Cardtronics Acquires Mr. Cash
Provides established base, infrastructure in Canada; will expand deployment model
HOUSTON -- Continuing in acquisition mode, Cardtronics Inc. has announced that its wholly owned subsidiary, Cardtronics Canada Ltd. has acquired Mr. Cash ATM Network Inc. With its acquisition of Mr. Cash--a privately held company based in Lethbridge, Alberta, and founded in 2005--Cardtronics has expanded its presence into Canada.
Cardtronics signed and closed this transaction on October 28. Financial terms of the acquisition were not disclosed.
It is the third deal in recent months--in August, Cardtronics acquired ATM operator Access to Money and search technology firm LocatorSearch LLC (see Related Content below for previous CSP Daily Newscoverage).
Mr. Cash delivers to Cardtronics an immediate, established ATM deployer presence in the Canadian landscape and a track record selling into the local merchant marketplace. By the numbers, Cardtronics enters Canada with hundreds of existing merchant relationships, the ownership/operation of nearly 600 ATMs across the country, plus an established sales channel partner network focused on the Canadian marketplace.
Acquiring Mr. Cash's operations provides Cardtronics--an established international ATM service provider with extensive operations in the United States, United Kingdom, Caribbean and Mexico--an enhanced global presence to better serve the ATM needs of multi-national chain retailers and financial institutions.
"Acquiring Mr. Cash and simultaneously crossing the border north into Canada is the definition of common sense expansion and writes the next chapter of Cardtronics' international story," said Steve Rathgaber, CEO of Cardtronics. "In Canada, Cardtronics gains a new market that is nearby and home to many well-known merchants and financial institutions operating on both sides of the border."
In addition to driving accelerated growth from Mr. Cash's legacy operations with an enhanced ability to fund new business opportunities, Cardtronics plans to bring its community-based business model to Canada. Complementing Mr. Cash's roster of existing merchant relationships, Cardtronics will also look to place Cardtronics-owned and -operated cash machines in Canada's most relevant retailers, thereby creating high-visibility ATM branding opportunities for financial institutions.
"Backed by the local experience of Mr. Cash's management team, Cardtronics is executing an entrance into Canada that is both time- and cost-efficient," said Mike Clinard, president of global services for Cardtronics. "Mr. Cash carries the potential of being a launching pad to organic growth by Cardtronics in Canada. Given the many marketplace similarities and proximity between the United States and Canada, we anticipate Cardtronics' business model will translate well across the border, with operational synergies expected."
Mr. Cash offers a variety of ATM programs including turnkey, partner and merchant ownership.
Houston-based Cardtronics owns/operates more than 41,900 retail ATMs in U.S. and international markets. It operates ATMs in the United States, the United Kingdom, Mexico and the Caribbean, primarily with retailers such as 7-Eleven, Chevron, Costco, CVS/pharmacy, ExxonMobil, Hess, Rite Aid, Safeway, Target and Walgreens. It also assists in the operation of approximately 4,500 ATMs under managed services contracts with customers such as Kroger, Travelex and Circle K. In addition to its retail ATM operations, the company provides services to large and small banks, credit unions and prepaid card issuers, allowing them to place their brands on 14,900 Cardtronics' ATMs and providing surcharge-free access through Cardtronics' Allpoint Network.