Corsair Capital has acquired Automated Teller Machine business NoteMachine for an undisclosed amount, buyint the company from Rutland Partners. As part of the deal, the firm says that NoteMachine’s management will retain a “significant shareholding” in the company. Founded in 2006 by CEO Peter McNamara, NoteMachine operates approximately 7,000 ATMs in the United Kingdom and, in addition, more than 500 ATMs in Germany.
Rutland Partners, the specialist turnaround and restructuring investor, and Corsair Capital, a leading specialist private equity firm focused on investing in the global financial services industry, announce the sale of NoteMachine, the leading independent Automated Teller Machine (“ATM”) business in Europe, to funds managed by Corsair Capital and NoteMachine’s management, who are retaining a significant shareholding in the company.
Founded in 2006 by CEO Peter McNamara, NoteMachine operates approximately 7,000 ATMs in the United Kingdom and, in addition, more than 500 ATMs in Germany. NoteMachine has a 7% share of cash withdrawals in the United Kingdom and its ATMs dispense £5 billion of cash every year.
Paul Cartwright, Managing Partner of Rutland said: “The NoteMachine business we have built with Peter McNamara and the team over six years has grown from 2,000 ATMs to become market leader with over 7,000 ATMs and is the only vertically integrated operator in the United Kingdom market with a growing presence in Germany. This transaction represents a cash return of approximately 1.3x Rutland’s investment. We are confident NoteMachine moves forward with highly experienced owners in Corsair and the NoteMachine management team. We wish the business every success for the future.”
Peter McNamara, Founder and Chief Executive Officer of NoteMachine, stated: “We are very pleased to have Corsair as an investor. Their investment in NoteMachine will help us to continue to deliver excellent services to our customers. In addition, as a financial services specialist investor, Corsair has the ambition and expertise to support the long-term growth of our business. NoteMachine is both the largest independent cash machine supplier across the United Kingdom and the number one independent ATM business in Europe. We also thank Rutland, who have been very supportive in the turnaround and development of NoteMachine over the last six years. With Corsair’s partnership, we believe that NoteMachine is well positioned to capitalize on its market leading position in the United Kingdom and building on its successful presence in Germany.”
Lord Davies of Abersoch, Vice Chairman of Corsair Capital who is based in London, who has joined the board of NoteMachine as non-executive Chairman, commented: “Corsair is excited to be acquiring NoteMachine, and to create a partnership with NoteMachine’s excellent management team led by Peter in order to participate in the company’s future success. NoteMachine is at a key inflection point in its expansion, and we are confident that Corsair’s global financial services market expertise will provide enhanced value to NoteMachine and its growth initiatives, including expansion into new markets. This investment is consistent with Corsair’s strategy to utilize its highly successful financial services sector experience to partner with a strong management team and to add value to the execution of the company’s business strategy. We view financial services infrastructure businesses and technology as central to the restructuring of the financial sector in the wake of the crisis and to the client service proposition.”
NoteMachine has established itself as one of the leading ATM operators in the United Kingdom. It has a vertically-integrated business model capable of delivering services across the entire value chain from installing, monitoring and servicing ATMs to providing cash via its in-house Cash-In-Transit facility. Even with the emergence of alternative payment methods, cash use remains the most popular means of making consumer payments in the United Kingdom, and ATMs are the leading means of obtaining cash with total volume of ATM withdrawals in the United Kingdom growing by 3.2% in 2011 compared to 2010.
With the NoteMachine transaction completed, Rutland Fund I (£210m) now has one remaining investment: Advantage Healthcare. The sale of NoteMachine is the third this year for Rutland and follows the recent sales from Rutland Fund II (£320m) of Pulse Home Products on 5 August 2012 and Attends Healthcare in February 2012.
The transaction was led on behalf of Rutland by Paul Cartwright and David Wingfield. KPMG provided financial advice to Rutland, Deloitte provided financial advice to management and Taylor Wessing acted as legal advisor to both Rutland and management.
Clifford Chance acted as legal advisor to Corsair Capital.