News

Cardtronics to purchase Welch ATM for $160M

The combined company will boast a global portfolio of 109,600 ATMs, including 92,500 retail ATMs in the United States.

July 21, 2014

Cardtronics has announced a definitive agreement under which it will acquire Welch ATM for cash purchase consideration of approximately $160 million.The combined company will support a global portfolio of 109,600 ATMs, including 92,500 retail ATMs in the United States, according to a Cardtronics news release.

Welch is a nationwide retail ATM and financial technology services provider with more than 26,000 ATMs under its management and branding relationships with more than 500 FIs and retailers. Kahuna ATM Solutions, a provider of ATM solutions for IADs, is a division of Welch ATM.

According the release, the acquisition will bring together complementary customer bases and sales capabilities: Cardtronics has achieved success placing ATMs with national chain retailers and forming ATM branding relationships with major FIs, while Welch has pursued a strategy of providing ATM services to mid-market retailers and ATM branding to mid-tier FIs.

A combined Cardtronics and Welch ATM organization will unite the leading providers of ATM services to Walgreens, with a collective of 5,100 ATMs in stores. Additionally, Welch ATM will add 3,100 company-owned, Rite Aid-located ATMs to Cardtronics' roster of retailer locations.

"The combination of Cardtronics and Welch ATM will create a larger, more diverse customer base, as well as offer a comprehensive range of ATM services across every market segment in the United States," Welch ATM CEO Jeff Hewitt said. "And that means compelling new opportunities to expand our product sets, including ATM branding and retailer traffic-driving solutions, to deliver more value to our customers."

"For clients, adding Welch ATM to Cardtronics will bring together two well-regarded ATM services providers with significant operational expertise, scale and financial resources," Cardtronics CEO Steve Rathgaber said.

Following the completion of the transaction, Hewitt will join the leadership team at Cardtronics as executive vice president of financial institution and retail sales and relationship management.

The companies anticipate closing later in the third quarter. Upon completion of the transaction, Cardtronics will update its fiscal 2014 guidance to include the acquisition of Welch ATM.