SYDNEY -- Bank of Queensland Ltd (BOQ) will purchase the remaining 90 percent stake in ATM Solutions Australasia Pty Ltd., an independent ATM provider.
According to a report in the Financial Times, the $16.2 million ($10.9 million U.S.) deal will boost the bank's ATM fleet to more than 1,000 and allow it to break into interstate markets.
Bank of Queensland also announced a $6 million rollout of 120 new ATMs to replace its current 20-year-old branch machines. Ten of the new machines are being tested in Brisbane, with the rollout expected to be final by the end of July.
The buy-out of ATM Solutions, Australia's third-largest ATM deployer, is subject to due diligence. The deal values the Melbourne-based company, which owns more than 1,000 ATMs across Australia, at $18 million ($12.1 million U.S.), according to the Financial Times.
The deal has obvious synergies for both companies, said Tim Wildash, ATM Solutions chief executive.
BOQ had purchased a 10 percent stake in ATM Solutions earlier this year.
According to an Asian Banker report, the deal will allow BOQ to better compete with Australia's big four banks, which dominate the country's ATM landscape. The Commonwealth Bank of Australia has around 3,500 ATMs while Westpac and ANZ have 1,200 to 1,500 ATMs each. National Australia Bank has more than 1,600 ATMs. The bank plans to re-brand the ATM Solutions ATMs to boost the bank's brand awareness.
