Access Cash General Partnership has purchased one of its rivals in a deal that makes the company Canada’s second-largest non-bank ATM deployer, said Chris Chandler, president of Access Cash.
“We are absolutely No. 2, but we are challenging for No. 1,” he said.
Chandler made his comments a day after Access Cash announced that it purchased Cash N Go Ltd.’s ATM business for a price Chandler declined to disclose. Cash N Go’s ATM estate included a total of 1,370 machines. Cash N Go owns 700 ATMs and the merchants own the balance.
With the deal for Cash N Go completed, Toronto-based Access Cash operates more than 6,400 non-bank ATMs in Canada, second to rival DirectCash ATM, which is based Calgary, Alberta. DirectCash ATM operates more than 7,000 ATMs in Canada, Mexico and the United States, according to its website. Access Cash also processes annually more than 28 million ATM withdrawals.
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Access Cash purchased Cash N Go after Hosted Data Transaction Solutions Inc. (HDX), another independent ATM deployer, failed to complete its purchase of Cash N Go. The two companies announced a deal in December 2009 but later called it off in March 2010.
Cash N Go, which is based in Edmonton, Alberta, was one of the five largest non-bank ATM deployers in Canada. The five largest deployers control 50 percent of Canada’s non-bank ATM market. Cash N Go installs ATMs in shopping centers, gas stations, sports stadiums and other locations.
Cash N Go’s purchase is a good fit for Access Cash, said Chandler.
“We are strong in Alberta, but the purchase of Cash N Go gives us a strong presence in British Columbia, where we were weak,” he said. Access Cash deploys its ATMs in off-premises locations, including convenience stores, universities and hospitals. Access Cash will consolidate many of its Western Canadian operations in Cash N Go’s Edmonton office.
Access Cash now operates three ATM companies. In addition to Access Cash and Cash N Go, the company also owns GAB EZEE ATM, which Access Cash purchased on Oct. 6, 2008, from Newport Partners Limited for C$36.5 million (U.S. $33.2 million).
Access Cash’s purchase of Cash N Go is Access Cash’s 20th acquisition since 2001, a strategy the company plans to continue.“We are a leading consolidator,” Chandler said. He explained that Canada’s off-premise ATM business is challenging because ATM cash withdrawals have been declining.
“There are more ATMs and Canada is moving to EMV,” Chandler gave as reasons for the drop in ATM withdrawals. Access Cash’s reason for buying rivals is because it gives the company scale needed to be successful in Canada’s non-bank ATM market, he said.
