Cardtronics Inc.’s acquisition of Access To Money Inc. continues to keep the ATM independent sales organization on the path it set for itself when the company went public in 2007, notes one observer.
“The reason Cardtronics went public in the first place was for this very reason, to consolidate the U.S. market for ATM outsourcing,” Gil Luria, an analyst who follows Cardtronics for Wedbush Securities LLC, tells PaymentsSource.
Cardtronics is involved in a business that relies on scale, Luria adds. “The more ATMs the company has under its management, the less it costs to operate each one of them and the more [machines] you can offer your customers,” he says.
Cardtronics announced Aug. 15 it had entered into a definitive agreement to acquire Access to Money for $21.2 million (
The companies expect the sale to close during the fourth quarter, pending approval from Access’ stakeholders and the completion of closing conditions. The deal is not subject to regulatory approval because of its small size, according to a news release announcing the deal.
Access To Money is an ATM-services provider to merchant and financial institutions. The Cherry Hill, N.J.-based company operates 10,350 machines in the U.S., according to the release.
Cardtronics adds a significant amount of retail presence from Access through the deal.
In 2010, Access signed a deal with convenience-store chain The Pantry Inc. to operate some 1,400 ATMs throughout 11 states in the southeast under the name Kangaroo Express.
Access to Money also provides Cardtronics with machines from a quick-service restaurant franchisor specializing in coffee and doughnuts. Cardtronics did not reveal the merchant.
“The Access To Money acquisition not only offers the opportunity to extend our reach with leading retail brands, including Kangaroo Express, but it also allows us to bring a new level of scale to our merchant-owned business,” Steve Rathgaber, Cardtronics CEO, said in the release.
Cardtronics is in a quiet period regarding the acquisition and could not provide comment. But it noted in the release Access To Money’s partnerships with community banks and credit unions, which will add to its financial institution partners.
The Access To Money acquisition is Cardtronics’ second such purchase in the past two months. In June, the Houston-based company announced it bought EDC Holding Co. LLC (
Cardtronics’ continuing consolidation of the U.S. market is not necessarily a negative for clients who rely on what the company offers, Luria says.
“[Banks and consumers] are getting a partner they trust more, that can be more consistent and reliable than having to deal with different partners if you are a bank or ATMs if you are consumer,” he says.
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