Wells Fargo Armored Service Corp. said it will acquire a California business that will increase its dominance of the automated teller machine servicing market in that state.
Wells Fargo Armored, which is unrelated to the Wells Fargo & Co. bank holding company, said it expects to complete the acquisition of the technical services unit of Golden Eagle Equipment Service Group Inc. by June 14.
Maintains 1,500 California ATMs
Golden Eagle's ATM servicing company employs about 100 people who provide maintenance and cash replenishment to 1,500 ATMs in California.
Wells Fargo Armored, an Atlanta-based subsidiary of Borg Warner Security Corp., is regarded as the leading independent provider of such services to banks.
It competes against Brinks Inc. of Darien, Conn, a subsidiary of the Pittston Co.
Wells officials said their company repairs and replenishes about 20,000 ATMs each month, which represent close to 25% of all ATMs installed in the United States.
While most banks still handle their own ATM replenishment and support, experts said the market for third-party services is likely to expand as bankers install more ATMs away from branch offices.
According to figures from a 1992 supply by the American Bankers Association, more than 20% of U.S. banking companies intend to deploy new off-premises ATMs in 1993.
"From a bank's perspective, the maintenance of a remote ATM is a much more complex and risky proposition than supporting a machine located in a branch," said Joseph C. Allen, a spokesman for Wells Fargo Armored.
"Given that remote locations are becoming more popular ATM sites, we feel like the market for our services will continue to grow," he said.