Cardtronics Grows in U.K., Enters Germany with $153 Million Deal (Aug. 8, 2013)
Aug. 8, 2013
Houston-based ATM operator Cardtronics Inc. is expanding its presence in the U.K. and entering the German market with the $153 million purchase of British ATM operator Cardpoint Ltd. In the U.K., Cardpoint operates more than 7,100 ATM locations under the name Cashzone, while the company’s German ATM network numbers 800 machines. Combined with Cardtronics’ existing U.K. network of 4,300 ATMs, the deal ups the company’s total European network to 11,400 machines, which will be run by a new Cardtronics business unit, dubbed Cardtronics Europe.
Cardtronics entered the U.K. in 2005, with the acquisition of Hertfordshire-based Bank Machine. “[T]his combination of the Cashzone, Cardpoint and Bank Machine ATM portfolios creates scale, synergies and geographic coverage on a level much quicker than its constituent parts could have achieved alone,” noted Cardtronics CEO Steve Rathgaber. “The combined enterprise to be formed from this transaction, Cardtronics Europe, can harness each organization’s skills and resources to build a European platform poised for sustainable growth in the U.K. and expansion into attractive markets such as Germany.”
Cardpoint generated $101 million in revenue during the 12 months ending on June 30, 2013. The Cardtronics Europe leadership team will be drawn from both companies and will maintain the local management, with former Cardpoint CEO Jonathan Simpson serving as managing director of the new entity, while Andreas Raabe will head the company’s German operations.
Last month, Cardtronics made news on its home soil, when its Allpoint Network affiliate struck a deal with Discover enabling Discover and Diners Club cardholders to access cash for free at Allpoint’s 43,000 U.S. ATMs.