After purchasing Welch ATM for $160 million, Cardtronics now has 109,600 ATMs worldwide and 92,500 in the United States. The companies are predicted to merge well together.
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 mid-market retailers and ATM branding to mid-tier 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.
“By combining Cardtronics and WelchATM, we will broaden our client mix and further our customerdiversification,” Cardtronics Chief Executive Steve Rathgaber said in astatement in the Wall Street Journal adding, “we expect to drive higherearnings per share within the next 12 months.”
The chief executiveofficers of the two companies have a positive outlook for the future of the newCardtronics. Both Rathgaber and Jeff Hewitt of Welch anticipate the expansionof their clientele and products. Hewitt will move to Cardtronics as executivevice president.
Overview by StephanieBill, Analyst, Banking Advisory Services
To read the full story, gothe Wall Street Journal.
