Cardtronics to acquire DirectCash Payments for C$19.00 per share
Cardtronics and DirectCash Payments announced a definitive agreement under which Cardtronics would acquire DCPayments. The purchase price of C$19.00 per share includes the assets of First Data Corporation's Australian retail ATM and managed services ATM portfolio, which was acquired by DCPayments on September 30. DCPayments is a leading global ATM services provider with approximately 25,000 ATMs with primary operations in Australia, Canada and the United Kingdom. The combination will leverage Cardtronics' existing infrastructure and relationships, and drive substantial operating synergies. The combined companies would serve approximately 225,000 ATMs in North America, Europe and Asia-Pacific. Under the terms of the agreement, Cardtronics will acquire all of the outstanding equity of DCPayments for C$19.00 per share in cash, representing a transaction value of approximately $460M in U.S. dollars, including approximately $53M of debt incurred by DCPayments to finance its purchase of the First Data Australian ATM portfolio on September 30, 2016. The First Data Australian ATM portfolio acquisition is expected to contribute more than $10M of annual Adjusted EBITDA. Cardtronics intends to fund the DCPayments acquisition with cash on hand as well as fully committed debt financing. Cardtronics has received commitments from banks to expand the size of its credit facility upon the completion of the transaction.