Business

NCR Closes In On Deal To Buy Cardtronics For $1.7 Billion

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NCR Corp. is close to a deal to buy ATM operator Cardtronics, fending off two other bidders, according to the Wall Street Journal on Sunday (Jan. 24).

NCR’s takeover, currently in the process of being finalized, will value Cardtronics at $39 per share or around $1.7 billion, those with knowledge of the matter told WSJ.

However, as usual, talks might not go anywhere.

NCR made its bid last week after Cardtronics was reported to have a deal to be sold to investment firms Apollo and Hudson Executive. After disclosing the bid to NCR, Cardtronics and NCR began discussions earlier this month, according to WSJ.

Last week, the NCR offer was deemed to be the better one, WSJ writes, and Apollo and Hudson had five days to increase their own offer. Instead of doing that, both companies opted to leave the table. They received a breakup fee of over $30 million as the merger agreement stipulates.

Cardtronics boasts 285,000 ATMs in 10 countries, and is one of the biggest cash machine operators in the world, WSJ writes. NCR, meanwhile, makes ATMs and also does point-of-sale systems for retailers and restaurants, among other types of businesses.

If the company makes a deal with NCR, it could result in NCR getting more of a foothold in the software sales and electronics business.

NCR was formerly known as National Cash Register and was once owned by AT&T.

PYMNTS pointed out earlier this month that NCR’s bid for Cardtronics shows the allure the ATM business has.

Michael Hayford, president and CEO of NCR, said in a statement that Cardtronics would line up nicely with its own platform, especially its ‘NCR-as-a-service’ strategy. He said the Cardtronics platform could help connect customers in retail or bank businesses and capitalize on the trend of banks outsourcing.

And Doug Brown, senior vice president and general manager of digital banking at NCR, told Karen Webster in an earlier conversation that the banking industry was increasingly looking toward digital options.

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NEW PYMNTS DATA: RETAIL BANKING SERVICES’ PARADIGM SHIFT STUDY – JANUARY 2021 

About: The January 2021, Retail Banking Services’ Paradigm Shift Report, PYMNTS examines how consumers choose to engage with their FIs when accessing information about various products and services, especially since the pandemic’s onset.

Read more at www.pymnts.com

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