HOUSTON – Cardtronics, the nation’s biggest provider of ATM services and a key credit union partner, said yesterday it has agreed to acquire the ATM subsidiary of Efmark Deployment and its 3,700 cash machines in the Midwest and Great Lakes region, doubling its ATM placements in multiple states.
Cardtronics will pay $145 million for the unit, known as EDC, which it expects to finance through its revolving credit facility of $220 million. Upon completion of the deal, Cardtronics will have ATM branding relationships with eight of the 15 largest U.S. banks (by assets).
"EDC has built a tremendous network of retail ATM placements and financial institution branding partnerships," said Steve Rathgaber, CEO of Cardtronics. "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.”
EDC operates ATMs in Sunoco gas stations and Cumberland Farms convenience stores, and has co-branding deals with Chase, Citizens Bank, Sovereign Bank, and PNC.
Cardtronics, which operates 23,500 ATMs in the U.S., has emerged as the leading electronic funds transfer switch for credit unions, with connections to the credit union owned CO-OP Financial Services and Credit Union 24 networks, as well as Financial Service Centers Cooperative shared branching network. It is also the owner of the Allpoint surcharge-free ATM network.
Cardtronics has also expanded internationally in recent years, with growing ATM operations in Mexico and the U.K.
