NCR said Monday that it's buying Cardtronics in a deal valued at $2.5 billion. NCR, a predominate maker of ATMs and point-of-sale terminals, plans to use the deal to accelerate its as-a-service strategy and non-hardware revenue.
Cardtronics is a non-bank ATM operator and provider of managed services and payment processing for retailers and financial institutions. NCR said Cardrtonic's Allpoint retail-based, surcharge-free ATM network is highly complementary to NCR's payments platform. The company also sees an opportunity to push further into the payments space via Cardtronics' existing network and installed base.
NCR said the combined company is expected to achieve $100 million to $120 million in run rate operating cost synergies by the end of 2022. The deal is expected to close in mid-year 2021.
"This transaction accelerates the NCR-as-a-Service strategy we laid out at Investor Day in December, further shifts NCR's revenue mix to software, services and recurring revenue, and adds value for our customers," said NCR chief executive Michael Hayford. "We have had a long-standing relationship with Cardtronics and its outstanding team. Its Allpoint network is highly complementary to NCR's payments platform, and the combined company will be able to seamlessly connect retail and banking customers. Simply put, we are better together."