NCR Makes Play For Cardtronics Despite Rival Private Equity Deal

NCR Corporation is the mystery suitor behind a recently-announced bid for Cardtronics, an operator of ATMs in 10 countries, that was submitted even as the company worked to close a previously-announced deal with different suitors, The Wall Street Journal (WSJ) reported.

In mid-December, Cardtronics announced a $35 per share offer from an entity owned and controlled by private equity firms Apollo Global Management and Hudson Executive Capital. On Dec. 31, Cardtronics received an “unsolicited proposal from a third party to acquire all of the ordinary shares of Cardtronics for $39.00 per share in cash,” a Jan. 7 Cardtronics filing with the Securities and Exchange Commission (SEC) stated.

Cardtronics did not disclose the identity of the “third party,” but WSJ reported the new bidder is NCR, citing several unidentified sources.

WSJ reported the new bid, coming closely on the heels of a pre-existing preliminary agreement between Cardtronics and the private equity firms, could create a bidding way for the company. Cardtronics stated in securities filings that it “enable(s) cash transactions at over 285,000 ATMs across 10 countries in North America, Europe, Asia-Pacific and Africa.”

NCR is based in Atlanta. According to WSJ, companies such as NCR that traditionally rely on hardware sales for revenue increasingly are eyeing providing software and services as alternatives.

Cardtronics is based in Houston and registered in the United Kingdom.

In a question-and-answer session with employees about the proposed sale to the private equity firms, according to an SEC filing, Cardtronics CEO Ed West said one of the advantages of the sale would be proposed buyers’ global footprint. He also said the new buyers are open to exploring expanding Cardtronics into areas beyond its traditional sweet spot of helping ATM-users withdraw cash from checking accounts.