Cardtronicsplc's planned acquisition of DirectCash Payments Inc. stands to givethe Houston-based payment processor its first foothold in the Asia-Pacificmarket.
The company is eager to enter the market, which is a"new frontier," according to Cardtronics CEO Steve Rathgaber. Valuedat about US$460 million, the pending purchase enables Cardtronics to make useof DCPayments' presence in Australia and New Zealand. Australia is an"established" ATM market with appealing margins because of a directcharge structure for independent ATMs, Rathgaber said during a conference callto discuss the deal. Cardtronics should also benefit from more managed serviceopportunities in Australia, he added.
In terms of further expansion in the Asia-Pacific market,Rathgaber said he expects there will be more growth beyond the"toehold" that this deal provides in the region.
"I don't expect it to be an avalanche or a rush,"he added.
Cardtronics CFO and COO Ed West also emphasized the"new geographic dimension" that the deal provides. West saidDCPayments' recently closed acquisition of First Data Corp.'s Australian ATM portfolio shouldresult in at least $10 million in incremental EBITDA growth for the combinedcompany.
The purchase of DCPayments will also contribute to theCardtronics' footprint in countries like Canada and the U.K., executives on thecall said. The company's stock rose 6.68% to $47.58 as of 2:04 p.m. ET on Oct.3.