ATM Network Inc. of Minnetonka was acquired by the Houston-based network giant.
ATM Network Inc., a privately held, Minnetonka-based provider of automated teller machines and ATM services, has been acquired by Cardtronics Inc. of Houston, the owner and operator of more than 61,000 retail ATMs in United States and abroad, the companies announced Wednesday.
ATM Network sells ATMs and also provides full-service ATM programs, including hardware, software, transaction processing, maintenance, reporting, marketing, training and ongoing customer service. Terms of the transaction were not disclosed, but Cardtronics said it expects the full-year impact of the ATM Network transaction to add annualized revenue of $7 million to $9 million.
ATM Network Inc. was founded in 1996 by Phil Rock, an ATM industry veteran. The company has its network in all 50 states and Washington, D.C., and has more than 6,000 clients and have more than 6,200 merchant ATMs under contract. The company focuses on the merchant market, primarily single-location retailers.
According to a 2003 Star Tribune article on ATM Network Inc., the company had revenue of $500,000 in its first year and had grown revenue to approximately $10 million by 2002.
Rock started by selling ATMs for his brother's business in the Pacific Northwest before founding the company. He chose Minnesota because of a noncompete agreement with his brother and the fact that his sister-in-law lived here. Rock could not be reached for comment Wednesday.
According to Cardtronics, ATM Network's management team and its 25 employees are expected to join Cardtronics. Rock will assume day-to-day leadership of Cardtronics' merchant ATM business. The Minnetonka office of ATM Networks will become the Midwest hub for Cardtronics.
Cardtronics, which has 643 employees, has traditionally owned and operated its own network of ATMs and partners with large retailers like Target, Walgreens and CVS to provide ATMs at their store locations. The company also provides branded ATM placements for large financial institutions.
In its last fiscal year, Cardtronics (ticker: CATM) had revenue of $625 million, a 17.4 percent increase over the previous year, and net income of $70.2 million, a 108 percent increase over the previous year.
Over the last year Cardtronics has made several acquisitions. In November it closed on a $21 million acquisition of Access to Money Inc., which had annual revenue of $27.5 million in 2010 and operated 10,350 ATMs. Access to Money is a provider of ATMs and services to merchants and financial institutions.
And also in November, Cardtronics moved into the Canadian market with the acquisition of Mr. Cash ATM Network Inc., an operator of 600 ATMs in Canada.
Patrick Kennedy • 612-673-7926