Cardtronics, a provider of automated consumer financial services, has agreed to acquire DCPayments in a transaction valued at $460m.
The deal, which is expected to conclude during the first quarter of 2017, will also help Cardtronics to further expand its footprint in Canada and the UK. It will also give Cardtronics access to new markets such as Australia and New Zealand.
Under the terms of the definitive agreement, Cardtronics would pay CAD19 per share for Calgary-based DCPayments, a premium of 48% to DCPayments' close on 30 September.
The deal, which includes debt of about $53m, is expected to be immediately accretive to adjusted net income per share, Cardtronics said.
Upon closing of the acquisition, both entities would have approximately 225,000 ATMs in North America, Europe and the Asia Pacific.
The transaction also includes DCPayments' 3,500 ATMs in Australia from First Data which was acquired by DCPayments on 30 September.
Cardtronics CEO Steve Rathgaber said: “Our proposed combination with DCPayments will enhance our global presence by adding Australia as an anchor market in Asia-Pacific, in addition to New Zealand. It also would grow Cardtronics' existing ATM estates in Canada, the United Kingdom and Mexico.
“The combination will further position us to be the preferred global provider of ATM solutions to retailers and financial institutions.
“This acquisition would broaden our exposure to helping financial institutions reevaluate their physical presence as part of the bank transformation trends we are seeing worldwide."