New ATM Network Emerges

LOUISVILLE, Ky. – Payment Alliance International, a provider of ATM and transaction services, announced it has agreed to acquire control over 8,500 ATMs from NetBank Payment Systems, creating one of the nation’s largest ATM networks. The $18 million deal give PAI management over almost 9,000 ATMs, which it will be marketing to credit unions and banks and other providers of financial transactions. Tremont Capital Group of Boston, a leading consultant in the ATM market, advised PAI on the deal. John Jackson, a spokesman at PAI, told The Credit Union Journal yesterday the company hopes to build a national brand out of its ATM network and is looking at other acquisitions, as well. Among the possible targets are TRM Corp., the Portland, Ore., the financially troubled operator of 15,000 ATMs—including 6,000 on the CO-OP Financial Services network. Jackson would not comment on the possibility of a merger with TRM. NetBank, one of the first virtual banks, acquired the ATMs after its management realized that it needed a physical presence to expand its market.