News

UK independent Cardpoint acquires Green Machine

October 1, 2002

LONDON -- Cardpoint plc, an independent ATM deployer in the UK, says it has acquired the business and assets of another independent deployer, ATM Express Limited or Green Machine, for £1,291,500 (approximately $2 million U.S.) in cash and stock.

According to a Cardpoint news release, Green Machine operates 85 ATMs throughout the UK, with machines located in hospitals, railway stations and shopping centers. An additional 20 ATMs are part of the acquisition and will be installed over the next 6 months in previously secured sites.

The 105 new machines will complement Cardpoint's existing 300 ATMs and give Cardpoint access to new markets, according to the release. Cardpoint owns all of the machines.

"Not only have we removed a direct competitor from our marketplace, but the similarities between the two businesses means that integration will be seamless and will deliver significant overhead cost savings," said Cardpoint chief executive officer Mark Mills in the release.

To help fund the deal, Cardpoint placed 1,666,667 ordinary or "placing" shares at 30 pence to institutional shareholders, raising £500,000 (approximately $783,000), before expenses. This will allow Cardpoint, which was listed on the UK's Alternative Investment Market (AIM) in June (see related story Cardpoint plans to list on UK's Alternative Investment Market), to draw down a further £500,000 of its £5m revolving credit facility with the Bank of Scotland, according to the release.