Bridgepoint

Leading UK Independent ATM operator, Bank Machine Ltd, has today announced its acquisition by American ATM operator Cardtronics, Inc. for an undisclosed sum. Bank Machine, which is owned by European private equity firm Bridgepoint, will see the takeover of its 1000 state of the art ATMs, making Cardtronics the largest ATM sales and service provider in the world.

The company now holds approximately 26,000 ATMs of which 10,000 are owned and 16,000 are managed. Bank Machine (BML), a full-service ATM provider, will be operated as a wholly-owned subsidiary of Cardtronics, retaining its current management and staff of 50 employees. The BML portfolio of ATMs are located throughout Great Britain in a variety of venues such as shopping centers, convenience stores, pubs and clubs, post offices and other off-premise locations. Some of their blue-chip merchant clients include such prominent names as McDonalds, Spar, Mitchell's and Butlers, the Post Office, Tesco, RoadChef and Odeon Cinemas.

In making the announcement, Cardtronics President and CEO Jack Antonini said, “We are pleased to add a fine company like Bank Machine Ltd to our organization. They have a strong, profitable track record with excellent growth prospects and are run by a very experienced management team. Their operating principles of providing great value supported by world-class service is the foundation of their success and aligns well with our business philosophy.” Antonini added, “Our entry into the European market marks a new phase of our growth and expansion. We plan to take advantage of opportunities to reach under-penetrated markets worldwide where we can leverage the significant economies of scale, operating expertise and superior customer service capabilities we have developed.”

Bank Machine Ltd's CEO Ron Delnevo, in commenting on the alliance with Cardtronics said, “We are excited about our future with Cardtronics. Being part of an industry-leading organization will bolster our ability to expand and develop new business in our estate and beyond. Leveraging Cardtronics' economies of scale will help us become an even more profitable, significant force in the ATM deployment business throughout the UK”. Bridgepoint, a private equity firm, owned 73% of BML after a management buyout of the UK ATM operations of Euronet Worldwide in January 2003.

According to Ruth McIntosh, Bridgepoint Director, the sale of BML was prompted by the desire to maximize investment return resulting from the growth and success of BML. “We felt the timing was right and we recognized a strong business synergy between Cardtronics and Bank Machine. The value of our investment rose due to the expertise of the management team lead by Ron Delnevo and the strategies employed to foster growth and profitability. “. The acquisition has been the result of over two years of continual growth in a rapidly expanding UK market. Bank Machine was the first independent ATM operator to arrive in the UK and has grown its portfolio of state of the art efficient ATMs rapidly in that time. The acquisition will spearhead Bank Machine's European expansion plans in the coming years. Advisors for this transaction were Close Brothers Corporate Finance, S.J. Berwin and Deloitte for Bank Machine and Bridgepoint; Allen & Overy for Cardtronics.