NCR and Cardtronics announce definitive acquisition agreement

https://www.mobilepaymentstoday.com/news/ncr-and-cardtronics-announce-definitive-acquisition-agreement/
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NCR Corp. a technology provider for the financial, retail and hospitality industries, and Cardtronics, a non-bank ATM operator and service provider, announced that they have entered into a definitive acquisition agreement, according to a press release.

Under the agreement NCR will acquire all outstanding shares of Cardtronics for $39.00 per share in an all-cash transaction with an enterprise value of approximately $2.5 billion, including debt. The transaction has been approved by the Boards of Directors of both companies,

“This transaction accelerates the NCR-as-a-Service strategy we laid out at Investor Day in December, further shifts NCR’s revenue mix to software, services and recurring revenue, and adds value for our customers,” Michael D. Hayford, President and CEO of NCR said in the release “We have had a long-standing relationship with Cardtronics and its outstanding team. Its Allpoint network is highly complementary to NCR’s payments platform, and the combined company will be able to seamlessly connect retail and banking customers. Simply put, we are better together.”

The combined company is expected to achieve $100-$120 million in run rate operating cost synergies by the end of 2022. The transaction is expected to be accretive to NCR’s non-GAAP EPS in the first full year following the close of the transaction.

NCR plans to finance the transaction with cash on hand and is fully committed to financing from Bank of America, N.A. The transaction is expected to close in mid-year 2021, subject to receipt of regulatory approvals and satisfaction of customary closing conditions, including approval by Cardtronics’ shareholders. Upon completion of the transaction, Cardtronics will become a privately held company and Cardtronics’ common shares will no longer be listed on any public market.

Prior to entry into the agreement with NCR, Cardtronics terminated its previously announced acquisition agreement with an entity affiliated with funds managed by affiliates of Apollo Global Management Inc. in accordance with the terms of the acquisition agreement. In connection with the termination, NCR paid the termination fee of $32.6 million in accordance with the terms of the acquisition agreement.

“We are pleased to announce this compelling transaction, which will deliver superior value to our shareholders,” said Edward H. West, CEO of Cardtronics. “This is a testament to the strength and value of Cardtronics, our talented team and customer base, and the complementary nature of our two businesses. Our Board determined that this transaction, which follows a comprehensive process and review of alternatives, is in the best interest of Cardtronics and our shareholders.”

https://www.mobilepaymentstoday.com/news/ncr-and-cardtronics-announce-definitive-acquisition-agreement/