Cardtronics Inc. announced on Tuesday that it has acquired EDC Holding Co.’s ATM subsidiary.
Cardtronics said it will acquire all ownership interests in EDC’s ATM business, including approximately 3,700 ATMs, as well as numerous ATM placement agreements with high-traffic U.S. retailers and ATM branding contracts with some of America’s largest financial institutions.
The move significantly expands the company’s ATM presence in the Midwest and Great Lakes regions and doubles its owned ATM placements in multiple states.
“EDC has built a tremendous network of retail ATM placements and financial institution branding partnerships,” Steve Rathgaber, Cardtronic’s chief executive officer, said. “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.”
The announcement spurred Standard & Poor’s Ratings Services to put Cardtronics on watch for a potential upgrade later Tuesday, the Wall Street Journal reports.
According to the American Banker, by Wednesday, Cardtronics shares were up 2.66 percent.
Cardtronics plans to finance the transaction largely through its revolving credit facility, which was recently expanded from $175 million to $220 million.