Bridgepoint leads ATM MBO

The European mid-market firm has agreed to back a $30m management buyout at cash machine operator Euronet Services.

Bridgepoint Capital, the UK-based European mid-market investor, has provided capital for a management buyout at Euronet Services (UK) in a transaction worth E32.5m.


The business is currently owned by NASDAQ-listed Euronet Worldwide, which has agreed to sell the business to management, headed by existing managing director Ron Delnevo. Euronet Worldwide will continue to provide operational services to the independent UK business, which has been renamed Bank Machine Ltd.


Euronet was founded in 1998 and has been a member of LINK since 2001. The business has 20 employees and operates over 700 internal ATMs installed in sites such as convenience stores, leisure outlets, post offices, clubs and pubs.


Euronet Services and its peers offer ATM facilities in areas not serviced by the high street banks and building societies. The UK ATM market has grown at around eight per cent annually to some 40,000 machines by the end of 2002. Bridgepoint forecasts that the market is set to grow at five to ten per cent per annum. Growth in ATM numbers has been mirrored by an increase in usage, with some 2.2 billion cash withdrawals made in 2001 alone.


“There is significant potential for Euronet to benefit from the strategic withdrawal from ATM provision of the smaller UK banks and building societies who are likely to dispose of all or part of their estates in the short to medium term,” said Andrew Burgess, director at Bridgepoint, who added that Euronet is expected to grow organically as well as making acquisitions on an opportunistic basis.


Senior debt for the acquisition was provided by Royal Bank of Scotland.