NCR is to buy Cardtronics in a substantial deal that has been valued in the region of $2.5 billion. The move is aimed at cultivating NCR’s vision of becoming more of an as-a-service business and ramp up its non-hardware related revenue, which includes point of sale (opens in new tab) terminals.
The acquisition of Cardtronics looks to be a good fit for NCR’s strategy as the former specializes in retail-focused surcharge-free ATMs. The latter thinks that it can gain a stronger foothold in the payments sector by developing on Cardtronic’s Allpoint successful retail network.
Expecting to close the deal by the middle of the year, NCR is already predicting the collaboration will allow it to achieve $100-$120 million in run rate operating cost synergies by the end of 2022, according to a statement issued by the company today.
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Once better known as National Cash Register, NCR is a leading US supplier of hardware and software for a wide variety of business uses including banks, retail, hospitality and the telecoms sector.
The company is perhaps best known for its ATMs, point of sale (opens in new tab) terminals, automated teller machines and barcode scanners for business, but has a wide and diverse portfolio of products and services. It also specializes in payments technology along with offering payroll (opens in new tab) and HR solutions (opens in new tab), which makes the purchase of Cardtronics a logical next step.
“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 Michael D. Hayford, President and Chief Executive Officer of NCR.
“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.”
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