News

UK's Cardpoint buys top-up operator

July 8, 2003

LONDON -- Independent ATM deployer Cardpoint plc has acquired PT Distribution Limited (PTD), the electronic mobile top-up division of Project Telecom plc that operates 2,900 mobile top-up terminals in retail outlets across the UK. The cost was £1.7 million ($2.7 million U.S.)

In 2002, the division had sales of £4.4 million ($7.1 million U.S.) and an operating loss of £102,000 ($166,200).

According to a news release, the acquisition marks an important step in the Cardpoint's strategy of broadening its revenue stream while continuing to focus on maximizing value from secure payment terminals in retail locations.

The acquired portfolio has many synergies with Cardpoint's since both businesses target retail outlets in complementary locations and with similar demographics. As a result, the acquisition will provide cross-selling opportunities and allow both divisions of the Cardpoint Group to access new markets and customer databases. 

PTD's management team will remain with the company, and its offices will remain in Newark.

Mark Mills, Cardpoint's chief executive, said in the release, "We are acquiring a business with a strong management team and a proven business model in a growing market. Our expertise in growing, managing and exploiting value from a network of cash machines combined with the expert management team at PTD is ideally suited to maximizing the potential return to shareholders from this acquisition."

Cardpoint plc owns and operates more than 1,700 ATMs across the UK. The company has acquired two ATM portfolios in the past nine months, from Green Machine and Securicor plc. (See related stories UK independent Cardpoint acquires Green Machine and British ISO Cardpoint buys Securicor's ATM business)