ATM maker NCR Corporation has announced it has agreed to acquire ATM operator Cardtronics for $39.00 per share, or a deal valuation of roughly $2.5 billion including debt.
The acquisition is part of NCR’s strategy shift towards generating a larger proportion of its sales from services, software, and other recurring revenue streams. NCR expects the deal to be accretive to non-GAAP EPS in the first full year after the acquisition closes.
The combined companies should also generate $100-$120 million in annual cost synergies by FY 2022. NCR will pay for Cardtronics with a mix of cash on hand and financing from Bank of America.
NCR will also pay a $32 million termination fee to Apollo Global management since Cardtronics had already agreed to be acquired by the private equity giant.
NCR and Cardtronics are being advised by Bank of America and Goldman Sachs respectively.