NCR Corporation, the American ATM manufacturer, has confirmed a $39-per-share bid to buy the American non-bank ATM operator Cardtronics (NASDAQ:CATM), rivaling a previous offer of $35-per-share made by the private equity firm Apollo in conjunction with the investment firm Hudson Executive.

Cardtronics had already entered into a definitive acquisition agreement with Apollo so a rival, bigger bid now from NCR could spark a rife between the three parties. 

The $39-per-share bid from NCR sums up to $1.7 billion net of debt, topping Apollo’s $35-per-share offer that summed up to $1.5 billion net of debt. 

Cardtronics is a company with a network of 285,000 ATMs across 10 countries in North America, Europe, Asia-Pacific, and Africa. The company maintains its headquarters in the state of Texas.

Cardtronics operates the Allpoint Network, which is the world’s largest retail-based surcharge-free ATM network with over 55,000 locations. 

As it’s not a licensed bank, Cardtronics is known to have the largest network of ATMs for a non-banking firm. The company makes money from streams including surcharge fees charged to cardholders using its ATMs and interchange fees charged to cardholders’ financial institutions. Also, Cardtronics helps other firms to manage their ATMs and charges monthly fees or a fixed rate per transaction in return for its management service.

Cardtronics has been a publicly-traded company since 2007. Now 14 years later, it seems likely headed for a buyout, be it from Apollo, a private equity firm, or NCR, an established company in Cardtronics’ line of business. 

For what it looks, Apollo and NCR would have to fight it out in a bidding war for Cardtronics.

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