News

Breaking: TRM expected to buy Travelex ATM business for $78 million

September 1, 2005

PORTLAND, Ore. - TRM Corp., which in May was listed by ATM & Debit News as being an ISO second only to Houston-based Cardtronics LP in its number of ATMs, announced Sept. 2 that it expects to buy the ATM division of United Kingdom-based Travelex UK Ltd.

The deal, which includes 1,100 ATMs, is expected to close by the fourth quarter of this year, subject to TRM's ability to finance the buy estimated to be $78 million.

"The Travelex U.K. ATM portfolio represents a winning combination: high volume locations and operator-owned equipment, rather than merchant-owned equipment," said Sam M. Ditzion, president and chief executive of Boston-based Tremont Capital Group, in an e-mailed response. "TRM and others have found it to be more cost effective to acquire large ATM portfolios from their peers rather than to grow organically."

The ATMs included in the acquisition deal are owned and operated by Travelex's ATM division and its joint venture company with Snax 24 Corp., Travelex ATMs Ltd. Most of the ATMs are located in gas stations, convenience stores, fast food restaurants and movie theaters.

"This deal is the most recent example of massive consolidation in the U.K. ATM market, which began in the U.S. market five years ago," added Ditzion, whose firm specializes in providing merger and acquisition advisory services to the ATM and related industries. "Rapid consolidation will continue in both the U.K. and U.S. markets over the next one to two years as the remaining viable deployers continue to combine."

*Information from an Associated Press article was used to write this story. Click here to read the AP story.