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Citigroup Inc.'s purchase of Wachovia Corp. more than doubles the size of Citi's
ATM network and creates the nation's thirdlargest bank-ATM network.
The deal, announced Monday, also continues the shakeup of the 10 largest bankowned ATM operators with two familiar names, Wachovia and Washington Mutual, apparently disappearing for good.
Citi says it purchased Wachovia for $2.16 October 2, 2008 4 billion in stock and assumed Wachovia's senior subordinated debt of $53 billion. New York-based Citi now operates a network of 8,577 ATMs, ranking behind first-place Charlotte, N.C.-based Bank of America, which has 18,531 machines, and second-place New York-based JP Morgan Chase & Co., owner of 14,272 ATMs.
In purchasing Wachovia, Citi jumps ahead of San Franciso-based Wells Fargo,
which operates 6,950 ATMs and had been the third largest bank-owned ATM operator. Before the deal, Citi owned 3,300 ATMs, and Wachovia owned 5,277, according to documents the companies provided to ATM&Debit News.
Citi also operates at least 5,600-branded ATMs in 7-Eleven Inc. stores that are
owned by Cardtronics Inc., the Houstonbased ISO that is the world's largest ATM
independent sales organization. Cardtronics declined to comment for this article.
With its purchase of Wachovia. Citi picks up 1000 ATMs in Florida, 675 in Georgia, 650 in North Carolina, 450 in Virginia and 150 in California, says Kate
Monahan, an analyst with Boston-based Aite Group.
"Citibank will have ATMs all along the Atlantic Coast," Monahan says. "The bank's customers will not have to go far to find a surcharge-free ATM."
Citigroup and Chase are beneficiaries of the mortgage crisis that claimed WaMu
and Wachovia as victims, observers say. Seattle-based WaMu last week filed for
bankruptcy before selling its assets to Chase.
The Federal Deposit Insurance Corp. backed Citi's purchase of Wachovia, which
also had a growing number of bad mortgages on its books.
