Acquisition results in some 3,700 ATMs, plus branding contracts with some of the largest financial institutions.
Cardtronics Inc. announced that its wholly-owned subsidiary, Cardtronics USA Inc., has completed the acquisition of EDC ATM Subsidiary LLC and Efmark Deployment I Inc. (collectively “EDC”). The cash purchase price of $145 million was funded through borrowings under the company’s amended credit facility.
As a result of the acquisition of EDC, Cardtronics added approximately 3,700 ATMs in high-traffic U.S. retail locations and ATM branding contracts with some of America’s largest financial institutions. With the completion of the acquisition, Cardtronics now has ATM branding relationships with eight of the 15 largest U.S. banks (by assets).
In conjunction with the funding of the EDC acquisition, the Company amended its credit facility for certain terms, including the following: 1) the committed credit under the facility was expanded from $175 million to $250 million; 2) certain pricing terms and covenants were amended to be generally more favorable to the company; and 3) the term of the facility was extended by one year, through July 15, 2016.
The company plans to update its financial guidance for 2011 to include the expected contribution of the EDC business when it issues its second quarter 2011 financial results, for which the information is provided below.
Second Quarter 2011 Earnings
Cardtronics has scheduled a conference call on Thursday, Aug. 4, 2011, at 4p.m. CT (5p.m. ET) to discuss the its financial results for the quarter ended June 30, 2011. Results for the quarter are expected to be released after the close of the financial markets that day.