News from the Wire

Cardtronics to acquire Welch ATM

Monday, July 21, 2014 — 17:34:11 (EDT)

Houston, Texas, July 21, 2014 – Cardtronics, Inc. (NASDAQ: CATM) today announced a definitive agreement under which it will acquire Welch ATM for $160 million. Upon completion of the transaction, the combined company will support a global portfolio of 109,600 ATMs, including 92,500 conveniently located retail ATMs in the United States.

The combination of Cardtronics and Welch ATM will bring together two top-performing retail ATM services providers, with complementary customer bases and sales capabilities. Cardtronics has demonstrated success placing ATMs with national chain retailers and forming ATM branding relationships with national and international financial institutions. Welch ATM has established its core strength around delivering ATM services to mid-market retailers and ATM branding to mid-tier banks and credit unions. The combined business will be positioned to accelerate revenue growth, achieve cost synergies, create additional value for its retailer and financial institution customers, and drive shareholder value.

A combined Cardtronics and Welch ATM organization will also bring together the leading providers of ATM services to Walgreens. The collective Walgreens portfolio totals 5,100 ATMs and a presence in a significant portion of the retailer’s nationwide footprint. Additionally, Welch ATM will add 3,100 company-owned, Rite Aid-located ATMs to Cardtronics’ roster of premier retailer locations.

Cardtronics Chief Executive Officer Steve Rathgaber said: “We believe this acquisition creates great value for all of our stakeholders. As a combined company, we can offer an expanded product set for customers and consumers, plus improved operational efficiencies. For our shareholders, by combining Cardtronics and Welch ATM, we will broaden our client mix and further our customer diversification. In doing so, we expect to drive higher earnings per share within the next 12 months.”

Welch ATM Chief Executive Officer Jeff Hewitt said: “The combination of Cardtronics and Welch ATM will create a larger, more diverse customer base, as well as offer a comprehensive range of ATM services across every market segment in the United States. And that means compelling new opportunities to expand our product sets, including ATM branding and retailer traffic-driving solutions, to deliver more value to our customers.”

Added Rathgaber: “For clients, adding Welch ATM to Cardtronics will bring together two well-regarded ATM services providers with significant operational expertise, scale and financial resources.”

Established in 2005, Welch ATM is a nationwide retail ATM and financial technology services provider, with more than 26,000 ATMs under its management. The company is also a well-regarded ATM branding partner, having contractual relationships with more than 500 financial institutions and retailers. Divisions of Welch ATM include Kahuna ATM Solutions, which is a provider of ATM solutions for independent sales organizations.

Cardtronics Leadership Team Following the completion of the transaction, Welch ATM founder and CEO Hewitt will join the leadership team at Cardtronics as executive vice president, Financial Institution and Retail Sales and Relationship Management. In this capacity, Hewitt will be responsible for all U.S. sales and customer relationship outreach and initiatives.

Transaction Details Cardtronics USA, Inc., a wholly owned subsidiary of Cardtronics, has entered into a definitive agreement under which it will acquire the Welch ATM business for cash purchase consideration (paid at closing) of approximately $160 million. The transaction is subject to regulatory approvals established by the Hart-Scott-Rodino Act, as well as the satisfaction of customary closing conditions. The companies anticipate closing later in the third quarter.

2014 Guidance Cardtronics will update its fiscal 2014 guidance to include the acquisition of Welch ATM following the completion of the transaction.

Conference Call Cardtronics will host a conference call tomorrow, July 22, at 8:30 a.m. EDT to discuss this transaction. To access the call, please call the conference call operator at:

Conference line: (877) 303-9205 Alternate dial-in: (760) 536-5226

Please call in 15 minutes prior to the scheduled start time and request to be connected to the "Cardtronics Conference Call.” Additionally, a live audio webcast of the conference call will be available online through the investor relations section of Cardtronics’ website at www.cardtronics.com .

A digital replay of the conference call will be available through August 5, 2014 and can be accessed by calling (855) 859-2056 or (404) 537-3406 and entering 77062331 for the conference ID. A replay of the conference call will also be available online through the Company's website subsequent to the call through August 22, 2014.

About Welch ATM Welch ATM is an independent ATM and financial technology services company founded in 2005. The Welch ATM management team together boasts more than a century of industry experience. Welch has utilized these industry knowledge and skills to develop relationships with over 500 financial institutions and major retailers. Welch ATM is a top branding partner in the industry, focusing on customer satisfaction and working individually with each client to create strategies that best fit their goals and needs. Welch is a privately held company with over 26,000 ATMs under management nationwide. Find Welch ATM online at www.welchatm.com , www.linkedin.com/company/welch-atm or twitter.com/WelchATM .

About Cardtronics (NASDAQ: CATM) Making ATM cash access convenient where people shop, work and live, Cardtronics is at the convergence of retailers, financial institutions, prepaid card programs and the customers they share. Cardtronics owns/operates more than 83,600 retail ATMs in U.S. and international locales. Whether Cardtronics is driving foot traffic for America’s most relevant retailers, enhancing ATM brand presence for card issuers or expanding card holders’ surcharge-free cash access on the local, national or global scene, Cardtronics is convenient access to cash, when and where consumers need it. Cardtronics is where cash meets commerce.

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Source: Company press release.