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Bank Machine expected to sell after 'strategic review'

March 16, 2005

Times Online: Bank Machine, Britain's first independent ATM operator, is conducting a "strategic review" which is most likely to lead to a sale of the business for up to £50 million (U.S. $96 million).

The company, which was formed from the management buyout of Euronet's UK division two years ago, has appointed Close Brothers to examine how it can expand its business. Ron Delnevo, Bank Machine's managing director, is in discussions with private equity firms and the most likely outcome would see one of them buy a majority stake and agree to inject fresh capital.

"The review is purely about how best to grow the company. We have about 1,000 ATMs at the moment but plan to add several thousand more in the next two or three years," Delnevo said. "We are also hoping to move into countries such as Germany, France and Italy."

He added that any deal would see the senior management team, which collectively owns about a quarter of the firm, retaining their positions and shares in the company.

Bank Machine, which reported a £2.5 million (U.S. $4.8 million) operating profit on sales of £12.9 million (U.S. $24.8 million) in 2003, became the UK's first independent ATM provider in December 1998, installing a machine in a Birmingham Spar. The operator now has ATMs in pubs, restaurants, supermarkets, convenience stores, railway stations, airports and on the high street.

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