News

Cardtronics acquires CDS

The $80 million deal brings Cardtronics a dedicated, purpose-built technology platform serving ATM deployers in the independent retail sector, the company says.

July 6, 2015

Cardtronics Inc. has announced its July 1 acquisition of Columbus Data Services LLC for an aggregate purchase price of approximately $80 million. CDS will operate as a separate division of Cardtronics and will be led by its current management team, a press release said.

Dallas-based CDS was founded in 1999 as an independent processor of ATM and payment card transactions for IADs, merchants and financial institutions. The company provides ATM driving and management services, network gateway access and debit card management services.

The acquisition of CDS adds a dedicated, purpose-built technology platform serving ATM deployers in the independent retail sector, the Cardtronics release said. CDS reportedly services more than 90,000 ATM terminals for bank and nonbank deployers.  The company's mobile and online management technology allows customers deployers to manage their ATM portfolios in real time.

Direct connections between CDS and all major U.S. debit and credit payment networks provides a highly scalable platform for growth, according to Cardtronics.

"The company's presence in processing ATMs in independent retail locations is highly complementary with Cardtronics' strength in the larger chain retail market," said CEO Steve Rathgaber. "We look forward to bringing Cardtronics' deeper resources, extensive distribution channels and differentiated ATM product set to CDS to accelerate its growth and provide greater value to its customers."

Cardtronics funded the purchase with borrowings under its credit facility; the acquisition will be slightly accretive to 2015 earnings and more accretive to 2016 earnings, the release. Cardtronics will provide updated fiscal 2015 financial guidance in conjunction with its upcoming second quarter earnings announcement.