News

Cardtronics finalizes acquisition of UK-based ATM services group

Sunwin Services Group provides secure cash logistics and ATM maintenance to Co-op Food, one of the largest grocery retailers in the UK.

November 3, 2014

The U.K.-based arm of Cardtronics Inc. has completed the previously announced acquisition of Sunwin Services Group, a subsidiary of the Co-operative Group, a press release announced. Purchase consideration of approximately $56 million will be paid to the Co-op Group in stages, a Cardtronics press release said.

SSG primarily provides secure cash logistics and ATM maintenance to the Co-op Food ATM estate. Co-op Food is a division of the Co-op Group and one of the largest grocery retailers in the U.K.

SSG also provides services — including manned guard services — to other Co-op entities, as well as to external customers. Cardtronics has used SSG for secure cash logistics services for several years, the release said.

The core SSG leadership team will be integrated into Cardtronics' existing U.K. management group, overseen by Cardtronics Europe Managing Director Jonathan Simpson-Dent.

"Integrating SSG with Cardtronics' existing internal secure cash logistics and ATM maintenance capabilities enhances the quality, geographic coverage and expertise of Cardtronics' integrated ATM services model," Simpson-Dent said in the release.

The acquisition of SSG by Cardtronics is part of a larger deal with the Co-op Group, which also has granted Cardtronics a seven-year, exclusive agreement to operate approximately 1,800 ATMs in Co-op Food stores. Cardtronics will take on the operation of the ATMs, upon expiration of the existing ATM contract — no later than January 2016.

Additionally, and beginning immediately, Cardtronics has the right to install and operate ATMs in Co-op Food locations that do not currently have ATMs, as well as in any new Co-op Food Store.