DGAP-News: Cardtronics Expands Through Acquisition in United Kingdom, Enters German Market

DGAP-News: Cardtronics Expands Through Acquisition in United Kingdom, Enters 
German Market

Cardtronics, Inc. 

07.08.2013 13:12

Quick Facts

  -- 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 Germany. 

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 operations.' 

'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.' 

Transaction Details

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 [Pounds]100 million 
$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. 

Conference Call

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
21 August. 

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
     Payments Council.)
  -- 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.


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
or otherwise. 

Contact Information:

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   
elizabeth.jones@withpr.co.uk  cbrewster@cardtronics.com

           Cardtronics is a registered trademark of Cardtronics, Inc.

        All other trademarks are the property of their respective owners.
News Source: NASDAQ OMX

07.08.2013 Dissemination of a Corporate News, transmitted by DGAP - 
a company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Language:     English
Company:      Cardtronics, Inc.
              United States
ISIN:         US14161H1086
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