Cardtronics Inc. announced an agreement last week to buy Access to Money Inc., a retail ATM network operator that currently operates 10,350 machines in the United States.
For $21.2 million in cash, the Houston-based Cardtronics will acquire the Cherry Hill, N.J.-based Access to Money, which has struggled financially in recent years, losing $845,000 in 2011’s first half, $1.31 million in 2010, and $6.62 million in 2009, according to DigitalTransactions.net. The terms of the deal includes the retirement of Access to Money’s debts.
In the second quarter, Cardtronics serviced an average of 37,505 transacting ATMs in the U.S., Mexico and the United Kingdom. At the end of June, the company owned 19,062 ATMS in the United States, operated another 8,215 merchant-owned machines and managed services to another 4,114 machines.
Cardtronics' machine locations include such major retailers as 7-Eleven, Costco, CVS/pharmacy, Target and Walgreens, as well as major gasoline retailers such as ExxonMobil and Chevron.
The deal brings in new merchant relationships to Cardtronics, as Access to Money operates 1,400 ATMS in 11 Southwestern states for The Pantry, which is the number three convenience store chain in the nation. Access to Money also has ATMS at nearly 500 Dunkin’ Donuts locations and has a growing ATM presence at banks and credit unions.
“Cardtronics’ building and owning a proprietary ATM transaction-processing infrastructure has helped unlock economies of scale on the company-owned ATM side of our business for a number of years now,” Cardtronics chief executive Steve Rathgaber said, according to DigitalTransactions.net. “The Access to Money acquisition not only offers the opportunity to extend our reach with leading retail brands, including Kangaroo Express [The Pantry], but it also allows us to bring a new level of scale to our merchant-owned business.”
Once the deal is completed, Cardtronics will operate 52,250 ATMs, including nearly 18,000 merchant-owned machines.