Independent ATM operator Cardtronics plc is expanding to Australia and New Zealand with the purchase of Canada’s DirectCash Payments Inc., which operates ATMs in several regions.
The $460 million cash deal will increase the number of ATMs Cardtronics serves globally by about 11%, bringing the total number to 225,000, the company said in an Oct. 3 press release. Cardtronics operates the Allpoint ATM network.
Cardtronics will add 25,000 ATMs to its network that DirectCash currently operates in Canada, Mexico, the U.K. and New Zealand. Included in the deal are 3,500 ATMs DirectCash owns or operates in Australia, which it acquired from First Data Corp. in a separate transaction that closed Sept. 30, 2016.
Cardtronics already has a connection to Australia, because its Allpoint network currently offers access to its surcharge-free ATM network in the country through a third-party agreement, according to a Cardtronics spokesperson. But with the deal announced today, Cardtronics for the first time will directly own or manage ATMs in Australia, the spokesperson said.
“The acquisition of DCPayments marks a significant milestone for Cardtronics, taking us into Asia-Pacific and growing our presence in existing geographies,” said Steve Rathgaber, Cardtronics’ CEO, in the press release.
The combination of the two companies is “a tremendous fit” to improve service for consumers and employees, added Jeffrey J. Smith, DirectCash Payments’ president and CEO.
The deal is expected to close in the first quarter of 2017, the companies said.
Cardtronics in April announced plans to shift its global headquarters from Houston to the U.K., and in July announced management changes to reflect organizational adjustments.