Cardtronics Expands Through Acquisition in United Kingdom, Enters German
*Acquisition of Cashzone ATM portfolio expands Cardtronics' existing U.K.
*Germany becomes first continental European market for Cardtronics
*Cardtronics Europe identity established
*Jonathan Simpson-Dent introduced as Managing Director
*Acquisition brings Cardtronics' scale business model to U.K. and Europe
LONDON and HOUSTON, Aug. 7, 2013 (GLOBE NEWSWIRE) -- Global ATM services
provider Cardtronics (Nasdaq:CATM) has acquired Cardpoint Limited, which
trades as ATM services provider Cashzone in the United Kingdom, and as
Cardpoint in Germany. In conjunction with this deal, Cardtronics introduces a
new corporate identity for its European operations, Cardtronics Europe, which
will combine Cashzone, Cardpoint and Bank Machine, Cardtronics' existing U.K.
subsidiary. From a consumer point-of-view, the Bank Machine and Cashzone
brands remain intact in the United Kingdom, as well as the Cardpoint brand in
Cardtronics Chief Executive Officer Steve Rathgaber said:
"Cardtronics has been operating in the United Kingdom since our 2005
acquisition of Bank Machine, playing a key role in expanding ATM access in the
U.K. With this transformative acquisition of the Cashzone and Cardpoint ATM
estates, Cardtronics establishes the foundation upon which to build a
Cardtronics Europe scale business to complement our North American
"In the U.K., in Germany—this 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. The
combined enterprise to be formed from this transaction, Cardtronics Europe,
can harness each organisation'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."
Combined Company Positioned for Long-Term Growth
A global ATM services company, Cardtronics has been part of the ATM provider
community in the U.K. since its 2005 acquisition of Hatfield,
Hertfordshire-based Bank Machine, which owns and operates an estate of 4,300
non-bank cash machines, both free-to-use (FTU) and pay-to-use (PTU).
Additionally in the U.K., Cardtronics operates Green Team Services, an
in-house armored courier provider; New Wave, its own ATM installation
operation; and in-house maintenance and engineering teams.
Established in 1999, Cashzone is an ATM services provider in the U.K. With its
ATM estate numbering 7,100 FTU and PTU machines, Cashzone ATMs are located
primarily at retailers, petrol forecourts, service stations and food and drink
outlets. By combining the ATM estates of Bank Machine and Cashzone,
Cardtronics Europe establishes a portfolio of 11,400 free-to-use and
pay-to-use ATMs in the U.K. In Germany, Cardpoint operates 800 ATMs, which is
the largest independent ATM portfolio in the country.
This combination, Cardtronics and Cardpoint Limited, reinforces and extends
Cardtronics' position as the world's foremost provider of conveniently located
retail ATMs. Expanding its worldwide ATM estate as a result of this
acquisition, Cardtronics now operates a global network of 80,100 ATMs—with
machines in the United States, United Kingdom, Mexico, Canada and Germany.
Initially in North America and now in the U.K. and Europe, Cardtronics
leverages the benefits of scale operational efficiencies and low unit-costs as
an enabler of business development, as well as increased value for clients,
consumers and shareholders.
Cardtronics' European Leadership Team
Cardtronics' European leadership team will draw from both companies and be
consistent with Cardtronics' established practice of being a global ATM
services company that maintains local management in the territories where it
operates. Jonathan Simpson-Dent has been appointed to the role of Managing
Director of Cardtronics Europe, having served as Cardpoint Limited chief
executive officer since February 2012; he will report to Steve Rathgaber,
chief executive officer of Cardtronics. Andreas Raabe will continue in his
role as Managing Director of German operations; based in Germany, Raabe
becomes part of Cardtronics' European leadership team.
Cardtronics Europe Managing Director Jonathan Simpson-Dent said:
"As Managing Director of Cardtronics Europe, I am excited to be inheriting the
proven sales engine from Cashzone and Cardpoint, the leading operational
platform of Bank Machine and the financial stability and backing that comes
with global ATM services provider Cardtronics. I look forward to further
developing and capitalizing on these combined strengths to serve our existing
customers, unlock new business opportunities and write the first chapter of a
growth-oriented Cardtronics Europe."
Cardtronics Europe Limited, a newly formed subsidiary of Cardtronics Inc.,
acquired Cardpoint Limited from Payzone Ventures Limited on 7 August for cash
purchase consideration (paid at closing) of approximately £100 million
(approx. $153 million). In the trailing 12 months through 30 June this year,
Cardpoint Limited generated revenue of $101 million. In preparation for the
closing of this acquisition, Cardtronics executed an amendment to its
revolving credit facility to increase the borrowing capacity from $250 million
to $375 million. Post-closing, Cardtronics Inc. has approximately $100 million
in available unused credit capacity under its revolving credit facility.
Cardtronics will host a conference call today, Wednesday, 7 August at 8:30
a.m. Eastern Daylight Time (1:30 p.m. Greenwich Mean Time) to discuss this
acquisition, 2013 updated financial guidance and preliminary 2014 financial
guidance. Also, Cardtronics placed a summary presentation of the transaction
and additional information about the Cashzone business and its combined
European business on its website as of Wednesday, 7 August. To access the
call, please call the conference call operator at:
Calling from U.S. Calling from Europe
Conference line:(877) 303-9205 Conference line: 00 1 760 536 5226
Alternate dial-in:(760) 536-5226
View presentation at: http://ir.cardtronics.com/events.cfm
Please call in fifteen minutes prior to the scheduled start time and request
to be connected to the "Cardtronics' Acquisition of Cardpoint Limited Call."
Additionally, a live audio webcast of the conference call will be available
online through the investor relations section of Cardtronics' website at
A digital replay of the conference call will be available through 21 August
and can be accessed by calling (855) 859-2056 or(404) 537-3406 and entering
27329638 for the conference ID. A replay of the conference call will also be
available online through the Company's website subsequent to the call through
Notes to editors
*Cash is currently a growth sector in the U.K. Recent Payments Council
figures show that in 2012, 20.8 billion cash payments were made by
consumers, an increase of 200 million from 2011, accounting for 54% of all
consumer payments. Additionally, cash machine withdrawals increased by
1.4% to 2.9 billion. (Source: U.K. Cash & Cash Machines 2013, published by
*Cardtronics, Inc. is a global ATM services provider, with 80,100 retail
ATMs deployed and operating across the United States, United Kingdom,
Mexico, Canada and Germany.
*Preceding this transaction, Cardtronics has operated in the U.K. as Bank
Machine, which has 4,300 machines located across major convenience store
chains, forecourts and motorway service stations. 94% of transactions are
through free-to-use machines. Cardtronics acquired Bank Machine in 2005.
*Cashzone has 7,100 machines in the U.K., of which 1,800 are free-to-use
ATMs, located primarily at independent convenience stores and service
stations. Cardpoint operates 800 ATMs in Germany
*Cardtronics operates ATMs in numerous locations ranging from large,
nationally-known retail merchants, shopping centres and airports, through
to smaller retailers the world over.
*In North America, Cardtronics also partners with financial institutions to
brand selected ATMs and financial services kiosks within its network, for
the purposes of expanding free-to-use ATM access.
*Allpoint Network -- Cardtronics also owns and operates the Allpoint
Network, which at 55,000 ATMs is the world's largest surcharge-free ATM
network. Allpoint provides surcharge-free ATM access in the U.S., U.K.,
Mexico, Canada, Puerto Rico and Australia.
*In the first quarter of 2013, Cardtronics completed the acquisition of
i-design group plc, a Scotland-based provider and developer of marketing
and advertising software and services for ATM owners.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Statements in this document and the exhibits furnished herewith include
"forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities Exchange
Act of 1934, as amended. The words "believe," "expect," "anticipate," "plan,"
"intend," "foresee," "should," "would," "could" or other similar expressions
are intended to identify forward-looking statements, which are generally not
historical in nature. While management believes that these forward-looking
statements are reasonable as and when made, there can be no assurance that
future developments affecting the Company will be those that it currently
anticipates. The Company's forward-looking statements involve significant
risks and uncertainties (some of which are beyond its control) and assumptions
that could cause actual results to differ materially from its historical
experience and its present expectations or projections. Important factors that
could cause actual results to differ materially from those in the
forward-looking statements include, but are not limited to: (1) the Company's
financial outlook and the financial outlook of the ATM industry; (2) the
Company's ability to respond to recent and future network and regulatory
changes, including potential requirements surrounding Europay, MasterCard and
Visa ("EMV") security standards; (3) the Company's ability to respond to
potential reductions in the amount of net interchange fees that it receives
from global and regional debit networks for transactions conducted on its ATMs
due to pricing changes implemented by those networks as well as changes in how
issuers route their ATM transactions over those networks; (4) the Company's
ability to renew and strengthen its existing customer relationships and add
new customers; (5) the Company's ability to pursue and successfully integrate
acquisitions, including the acquisition of Cardpoint Limited that it completed
in August 2013; (6) the Company's ability to provide new ATM solutions to
retailers and financial institutions; (7) the Company's ATM vault cash rental
needs, including potential liquidity issues with its vault cash providers and
its ability to continue to secure vault cash rental agreements in the future;
(8) the Company's ability to successfully manage its existing international
operations and to continue to expand internationally; (9) the Company's
ability to prevent security breaches; (10) the Company's ability to manage the
risks associated with its third-party service providers failing to perform
their contractual obligations; (11) the Company's ability to manage
concentration risks with key customers, vendors, and service providers; (12)
changes in interest rates and foreign currency rates; (13) the Company's
ability to successfully implement its corporate strategy; (14) the Company's
ability to compete successfully with new and existing competitors; (15) the
Company's ability to meet the service levels required by its service level
agreements with its customers; (16) the additional risks the Company is
exposed to in its U.K. armored transport business; and (17) the Company's
ability to retain its key employees. Other factors that could cause the
Company's actual results to differ from its projected results are described in
the Company's Annual Report on Form 10-K for the fiscal year ended December
31, 2012, its reports and registration statements filed from time to time with
the Securities and Exchange Commission and other announcements it makes from
time to time.
Readers are cautioned not to place undue reliance on forward-looking
statements, which speak only as of the date hereof. The Company undertakes no
obligation to publicly update or revise any forward-looking statements after
the date they are made, whether as a result of new information, future events
Media Relations Investor Relations
Elizabeth Jones Chris Brewster
WithPR UK Chief Financial Officer
Tel: +44 (0) 207 249 7769 Tel: 00 1 832 308 4128
Cardtronics is a registered trademark of Cardtronics, Inc.
All other trademarks are the property of their respective owners.
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