Cardtronics Inc. today announced that its wholly-owned subsidiary, Cardtronics USA, has entered into a definitive agreement under which it will acquire EDC ATM Subsidiary and Efmark Deployment (collectively EDC), according to a company press release.
Under the terms of the agreement, and upon closing, Cardtronics will pay $145 million, plus or minus an adjustment for working capital as of the closing date. Cardtronics expects this transaction to be accretive to adjusted net income per share in 2011 and increasingly accretive in future years as synergies are fully realized.
Upon closing of the transaction, Cardtronics will acquire all ownership interests in EDC's ATM business, including approximately 3,700 ATMs, as well as numerous ATM placement agreements with U.S. retailers and ATM branding contracts with financial institutions.
Sam M. Ditzion, CEO of a Boston-based merger and acquisition advisory firm to the ATM industry, indicated that EDC has built an increasingly strong reputation in recent years with several high profile chains.
“This deal could benefit Cardtronics in the longer term, as it removes one of its competitors when it comes to bidding on corporate chain placement contracts,” said Ditzion.
EDC operates nationwide with an ATM-placement portfolio focused on multistate retail operators and high transacting merchant locations, such as convenience stores.
"EDC has built a tremendous network of retail ATM placements and financial institution branding partnerships," Cardtronics CEO Steve Rathgaber said. "This acquisition would enhance Cardtronics' reach in more geographic regions across the U.S. and would expand our relationships in the important convenience store market."
