LONDON -- Securicor plc, an international security solutions group, has agreed to sell its ATM management business, Securicor Cash Machine Limited (SCM), to Cardpoint plc, provided Cardpoint's shareholders approve.
According to a news release, the transaction value will be up to £10 million (about $16.4 million U.S.) Following a cash payment of £5 million ($8.2 million), there will be further payments of up to £5 million based on the volume of ATM transactions, the number of new ATMs installed and Securicor's service level performance, among other factors.
Securicor has entered into a four-year outsourcing agreement with Cardpoint under which Securicor will provide Cardpoint with all cash availability and maintenance activities.
Jeff Anderson, managing director of Securicor Cash Services, said in the release, "We are pleased to be working with Cardpoint to supply an integrated ATM cash solution, building on our increasing ability to provide back office, forecasting and reconciliation as part of our ATM end-to-end service."
SCM commenced operations in 2000, and in the six months to 31 March 2003, generated turnover of £5 million.
The acquisition is the second for Cardpoint in less than a year. In October, Cardpoint purchased 105 ATM contracts from ATM Express Limited or Green Machine, for £1.2 million(approximately $2 million U.S.) in cash and stock. (See related story UK independent Cardpoint acquires Green Machine)
Cardpoint, which was founded in 1999, last year raised £2.5 million through an institutional placement run by broker Evolution Beeson Gregory. The ISO also listed its shares on the UK's Alternative Investment Market (AIM), which allowed it to use a £3 million debt facility from its lender, Halifax Bank of Scotland. (See related story Cardpoint plans to list on UK's Alternative Investment Market)
