News

Cardtronics to purchase UK-based DCPayments for $460M

October 4, 2016

Cardtronics PLC and DirectCash Payments Inc. have entered a definitive agreement under which Cardtronics will acquire DCPayments for approximately $460 million, the companies announced in a press release.

The purchase price includes the assets from the First Data Corp. Australian retail and managed services ATM portfolio, which DCPayments acquired on Sept. 30.

DCPayments has approximately 25,000 ATMs (including the First Data portfolio) with primary operations in Australia, Canada and the United Kingdom.

The combined companies would serve approximately 225,000 ATMs in North America, Europe and Asia-Pacific.

"Our proposed combination with DCPayments will enhance our global presence by adding Australia as an anchor market in Asia-Pacific, in addition to New Zealand," Cardtronics CEO Steve Rathgaber said in the release. "It also would grow Cardtronics' existing ATM estates in Canada, the United Kingdom and Mexico. The combination will further position us to be the preferred global provider of ATM solutions to retailers and financial institutions."

According to the press release, the acquisition would:

• establish Australia as a new market for Cardtronics, with ownership or management of approximately 11,000 ATMs in the country;.
• increase Cardtronics' footprint in Canada, resulting in more than 11,000 ATMs under management in that market; and
• add more than 5,700 ATMs to the company's estate in the U.K., where it already boasts a sizeable presence.

Under the terms of the agreement, Cardtronics will acquire all of the outstanding equity of DCPayments for $14.46 per share per share in cash. The purchase price of $460 million also includes approximately $47 million of debt incurred by DCPayments in its purchase of First Data's Australian portfolio.

Subject to satisfaction of certain closing conditions, the transaction is expected to close early in the first quarter of 2017, the release said.

RBC Capital Markets LLC is serving as financial advisor to Cardtronics; Baker & McKenzie is serving as legal counsel. BMO Capital Markets is serving as financial advisor to DCPayments; Bennett Jones is serving as legal counsel.