Cardtronics to Acquire EDC for $145M
HOUSTON – Cardtronic Inc.’s wholly owned subsidiary, Cardtronics USA Inc., purchased EDC ATM Subsidiary and Efmark Deployment I Inc. (known collectively as EDC) for roughly $145 million. The deal will give Cardtronics ownership of approximately 3,700 ATMs, as well as placement agreements with high-traffic U.S. retailers and branding contracts with eight of the largest U.S. financial institutions in terms of assets. Once the deal closes, Cardtronics will own or manage more than 41,000 ATMs worldwide.
“EDC has built a tremendous network of retail ATM placements and financial institution branding partnerships,” said Steve Rathgaber, Cardtronics’ CEO. “This acquisition would enhance Cardtronics’ reach in more geographic regions across the U.S. and would expand our relationships in the important convenience store market. Cardtronics remains the most proven and trusted ATM provider in both the financial services and retailer worlds.”
Cardtronics said the EDC purchase will contribute to its bottom line immediately and will be increasingly accretive in subsequent years. The deal is subject to regulatory approvals, which Cardtronics expects to occur during its fiscal third quarter.
Cardtronics will pay for the purchase via its revolving credit facility. EDC’s unit generated revenues of about $56 million for the 12-month period ending March 31.