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In non-FinTechy news, NCR shells out USD 1.7b for CardtronicsINTL

In non-FinTechy news, NCR shells out USD 1.7b for Cardtronics

Do people still use ATMs in real life? If you’re NCR, you’d wish the answer is… hopefully, yes.

NCR Corporation (NCR), which is a maker of ATMs and point-of-sale systems, bought off ATM operator Cardtronics Plc (CATM) for an astounding USD 1.7b in an all-cash deal at USD 39 per share. They beat a previous bid from Apollo Global Management Inc. and Hudson Executive Capital LP, who proposed to purchase their shares at USD 35 per share last year.

Cardtronics has around 285,000 ATMs across different countries and has often successfully partnered with banks who want to give their customers access to cash even as they reduce their number of physical branches.

The ATM-maker said it believed Cardtronics’ network was “highly complementary” to their payments platform and will “enable the combined company to seamlessly connect retail and bank customers.”

why it matters
There seemed to be some doubt regarding NCR's conviction that the purchase will allow it to capitalize on the banking industry’s "transition toward infrastructure outsourcing," as their CEO put it. Following the offer, Cardtronics' shares were trading slightly up, while NCR's stock was down 3.4%. It is worth keeping an eye out on the results of this deal to find out whether it was a truly visionary move or not.