- Acceleration in migration of approximately 1,900 Co-op Food ATMs to Cardtronics
- Exclusive ATM provider to Co-operative Food through 2022
- Migration to commence late 2014 and complete over the course of 2015
HOUSTON, Nov. 21, 2014 (GLOBE NEWSWIRE) -- Cardtronics, Inc. (Nasdaq:CATM) today announced that in connection with its previously announced exclusive ATM operating agreement with Co-operative Food ("Co-op Food") in the United Kingdom, the migration of the approximately 1,900 high-transacting ATMs will commence in late 2014 instead of in January 2016, as previously contemplated. The migration will continue over the course of 2015. Co-op Food is a division of the Co-operative Group and one of the largest grocery retailers in the U.K., with a food store in every postal area.
As announced on September 2, 2014, Cardtronics entered into an exclusive ATM services agreement to operate the existing Co-op Food ATM estate through 2022. The ATM count has been updated to approximately 1,900 from the previously announced 1,800. The agreement also gives Cardtronics rights to install and operate ATMs at hundreds of Co-op Food locations that do not currently have an ATM. As part of the same announcement, Cardtronics entered into an agreement to acquire Sunwin Services Group ("SSG"), a subsidiary of the Co-operative Group that provides secure cash logistics and ATM maintenance to the Co-op Food ATM estate and other customers, as well as manned guarding services. This acquisition of SSG closed on November 3, 2014.
The Co-op Food ATMs, both new and existing, once migrated to Cardtronics, will remain free-to-use and be jointly branded 'Co-op Food' and 'Cashzone,' the consumer-facing brand of Cardtronics U.K.
The base purchase consideration amount remains £35 million, as previously announced. In consideration of the earlier start of the ATM operating agreement, Cardtronics will pay an additional £6.5 million to the Co-operative Group. Cardtronics will also pay £6.4 million to Co-operative Bank to acquire the existing ATM equipment at Co-op Food stores. Comments on the financial impact of this development will be communicated in conjunction with the release of Cardtronics' fourth quarter 2014 results.
Cardtronics Europe Managing Director Jonathan Simpson-Dent said:
"Given the strong brand image of Co-op Food, as evidenced by its high-traffic stores and ATMs, Cardtronics U.K. certainly welcomes this opportunity to become its exclusive provider of ATM services earlier than originally projected. As the migration to Cardtronics progresses, we have an opportunity to further our reputation for exceptional service and to significantly grow our U.K. transaction volume throughout 2015."
About Co-op Group
The Co-operative Group is the UK's largest co-operative business, whose purpose is "Championing a better way of doing business for you and your communities." Owned by over eight million members, The Co-operative Group operates a total of 4,500 outlets, with around 87,000 employees and has an annual turnover of £11 billion with interests across food, funerals, insurance and legal services.
About Cardtronics (Nasdaq:CATM)
Making ATM cash access convenient where people shop, work and live, Cardtronics is at the convergence of retailers, financial institutions, prepaid card programs and the customers they share. Cardtronics owns/operates more than 111,150 retail ATMs in U.S. and international locales. Whether Cardtronics is driving foot traffic for America's most relevant retailers, enhancing ATM brand presence for card issuers or expanding card holders' surcharge-free cash access on the local, national or global scene, Cardtronics is convenient access to cash, when and where consumers need it. Cardtronics is where cash meets commerce.
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