Cardtronics Acquires Welch ATM for $160 Million
Combined company will support 109,600 ATMs worldwide
Published in CSP Daily News
HOUSTON -- Cardtronics Inc. announced it will acquire Chesterfield, Mo.-based Welch ATM for $160 million. Upon completion of the transaction, the combined company will support a global portfolio of 109,600 ATMs, including 92,500 conveniently located retail ATMs in the United States.
The combination of Cardtronics and Welch ATM will bring together two top-performing retail ATM services providers with complementary customer bases and sales capabilities.
Houston-based Cardtronics has demonstrated success placing ATMs with national chain retailers and forming ATM-branding relationships with national and international financial institutions. Welch ATM has established its core strength around delivering ATM services to midmarket retailers and ATM branding to midtier banks and credit unions. The combined business will be positioned to accelerate revenue growth, achieve cost synergies, create additional value for its retailer and financial institution customers, and drive shareholder value.
“We believe this acquisition creates great value for all of our stakeholders,” said Cardtronics chief executive officer Steve Rathgaber. “As a combined company, we can offer an expanded product set for customers and consumers, plus improved operational efficiencies. For our shareholders, by combining Cardtronics and Welch ATM, we will broaden our client mix and further our customer diversification. In doing so, we expect to drive higher earnings per share within the next 12 months.”
A combined Cardtronics and Welch ATM organization will also bring together the leading providers of ATM services to Walgreens. The collective Walgreens portfolio totals 5,100 ATMs and a presence in a significant portion of the retailer’s nationwide footprint. Additionally, Welch ATM will add 3,100 company-owned, Rite Aid-located ATMs to Cardtronics’ roster of premier retailer locations.
“The combination of Cardtronics and Welch ATM will create a larger, more diverse customer base, as well as offer a comprehensive range of ATM services across every market segment in the United States,” said Welch ATM chief executive officer Jeff Hewitt. “And that means compelling new opportunities to expand our product sets, including ATM branding and retailer traffic-driving solutions, to deliver more value to our customers.”
Added Rathgaber, “For clients, adding Welch ATM to Cardtronics will bring together two well-regarded ATM services providers with significant operational expertise, scale and financial resources.”
Established in 2005, Welch ATM is a nationwide retail ATM and financial technology services provider, with more than 26,000 ATMs under its management. The company is also a well-regarded ATM branding partner, having contractual relationships with more than 500 financial institutions and retailers. Divisions of Welch ATM include Kahuna ATM Solutions, which is a provider of ATM solutions for independent sales organizations.
Following the completion of the transaction, Welch ATM founder and CEO Hewitt will join the leadership team at Cardtronics as executive vice president, Financial Institution and Retail Sales and Relationship Management. In this capacity, Hewitt will be responsible for all U.S. sales and customer relationship outreach and initiatives.