An investor group that includes members of Triton Systems of Delaware’s management has purchased the Long Beach, Miss.-based ATM manufacturer from parent Dover Corp. for an undisclosed price.
The investor group, which includes Daryl Cornell, Triton president and CEO, and other Triton senior executives, completed the deal in early April, James Phillips, Triton director of North American Sales, tells PaymentsSource. Phillips declined to disclose the other investors’ names.
A spokesperson for Dover, a New York-based manufacturing company, did not return calls seeking comment.
The new owners took the company private, renaming it Triton Systems of Delaware LLC after dropping its old name Triton Systems of Delaware Inc. As a privately held company, Triton still is required to file financial statements with the U.S. Securities & Exchange Commission and other federal and state agencies, but the company can more easily pursue opportunities other than manufacturing ATMs for the off-premise market, although that remains the company’s core business, Phillips says.
“We can be a much more nimble operation and look at opportunities as they present themselves after studying the business case,” says Phillips, adding Triton has assembled a business-development group to do just that.
Leon Majors, president of the payments systems practice at Phoenix Marketing International in Salisbury, Md., agrees Triton will be more nimble. “When a company is part of a much larger business, there is a lot of paper between them and the street,” Majors says.
The 250-employee company will develop specialized software applications for ATMs and kiosks, partner with companies, and manufacture boutique or one-off products. In the U.S. and Canada, markets are saturated with ATMs, Triton will focus on encouraging ISOs to replace their older-model ATMs with newer-model devices. This strategy also includes persuading ISOs to replace older ATM parts with new or refurbished parts, Phillips says.
As a Dover company, Triton could not afford to spend financial resources on small projects because the company devoted much of financial resources to developing markets for their ATMs in India and China, Phillips says. “It takes a lot of resources to develop those markets,” he says.
Triton also plans to expand nationwide ATMGurus, its Memphis, Tenn.-based business that trains technicians employed by ISOs to repair low-cost ATMs manufactured by Tranax Technologies Inc. and Nautilus Hyosung Inc. “We plan to expand ATMGuru’s training reach around the country so technicians do not have to travel to Memphis,” Phillips says.
Triton launched ATMGurus before investors purchased Triton from Dover (see story).
It was Triton’s failed deal with Nautiltus Hyosung Inc., the South Korean ATM manufacturer, which operates a facility in Coppell, Texas, that helped seal Triton’s fate. Nautilus Hyosung in July 2009 proposed buying Triton, but the U.S. Justice Department objected and both sides called off the agreement (see story).
Later that fall, Bill Johnson, Triton’s president and CEO, left Triton, leaving Cornell, Triton’s general manager, as acting CEO.
Investors’ purchase of Triton, coupled with Payment Alliance International’s purchase of ATM manufacturer WRG Services Inc., means Nautilus Hyosung, which dominates the U.S. off-premise market, now has two strong competitors, Majors says.
Nautilus Hyosung still may win, but now other substantial competitors are in the market,” he adds (see story).