TA Associates invests $75m in Cardtronics

Boston-based TA Associates has invested in a US automated teller machine operator.

Private equity firm TA Associates has invested $75 million (€57 million) in Cardtronics, the largest independent owner and operator of automatic teller machines in the US.

Houston-based Cardtronics owns and operates automated teller machines (ATM) in approximately 25,000 locations, largely at drugstores, retailers and gasoline stations. Their clients include retailers A&P, Albertsons, Duane Reade, Target and Walgreens. Last year, the company said, they dispensed more that $6.5 billion in cash and processed more than 111 million transactions.   

The company’s revenues have increased from $45 million in 2001 to $195 million in 2004, an increase Jack Antonini, president and chief executive officer of Cardtronics, chalked up to the company’s previous private equity investment from CapStreet Group.

Michael Wilson, a managing director at TA, said the company’s growth was attractive, as well as its presence in well-established and well-placed chains.

“The Cardtronics management team has executed an impressive organic growth and acquisition strategy in order to emerge as a market leader in the ATM industry”, said Wilson. “With high quality locations under long-term contracts, we believe that they are well-positioned to continue their success”.

Wilson said that TA had been interested in investing in the company for the past three years. He said they plan to continue to grow the company, as well as focus on acquisitions.

Wilson will join the Cardtronics board, along with Roger Kafker, also a managing director at TA.

Cardtronics has also received private equity investment from the Houston-based CapStreet Group’s Active CapStreet II Fund in 2001.