The Brink’s Company (NYSE:BCO) today announced its acquisition of NoteMachine, one of the leading ATM networks in the United Kingdom, for approximately $179 million or 5.0 times adjusted EBITDA. For the fiscal year ended June 30, 2022, NoteMachine generated revenue of approximately $131 million and adjusted EBITDA of approximately $36 million at current exchange rates. The acquisition is expected to be accretive to earnings in the first year and was financed using available cash and Brink’s existing credit facility.
Headquartered in Crickhowell, United Kingdom, NoteMachine manages more than 9,000 ATMs. The acquisition expands the footprint of Brink’s ATM managed services business to approximately 130,000 ATMs worldwide.
“We have been actively growing our ATM managed services business, both organically and inorganically, and this is an important step in the execution of our long-term strategy,” said Mark Eubanks, president and CEO of Brink’s. “NoteMachine’s expertise, monitoring and dispatch center, and software technology infrastructure will be of great strategic value in supporting the growth of our global ATM operations, especially those in Europe.”
David Dove, leader of Brink’s global ATM managed services business, will oversee and support NoteMachine’s management team. “We will leverage NoteMachine’s fully integrated model, including its global TestLink parts business, to support growth across both financial institution and retail customer segments,” said Dove.
Philip Bowcock, CEO of NoteMachine, said, “Brink’s is a global leader in tech-enabled cash management, with a strong presence in ATM outsourcing. This is absolutely the right direction for NoteMachine, our customers and our employees,” said Bowcock, who has been working closely with NoteMachine’s existing ownership group, including majority shareholder Corsair Capital, which will exit the business.
“Under Corsair’s ownership, NoteMachine has made significant progress, and Brink’s will build on that momentum with greater scale to drive sustainable organic growth,” said Bowcock.
Balanced Capital Allocation Strategy Includes Share Repurchases in Q3
In the third quarter of 2022, Brink’s repurchased a total of 501,560 shares of its common stock for an aggregate of $27.3 million and an average price per share of $54.36 under its previously authorized share repurchase program.
“Our ongoing plan to continue repurchasing shares demonstrates the confidence we have in our future growth and is consistent with our capital allocation strategy,” said Eubanks. “Our strong balance sheet and cash flow give us the flexibility to return capital to shareholders as we continue to invest in growing our business.”
The company expects to continue repurchases under its current $250 million share repurchase authorization, at the discretion of management, including through open market transactions pursuant to trading plans in accordance with Rule 10b5-1 and Rule 10b-18 under the Securities Exchange Act of 1934, as amended, on an opportunistic basis or through other arrangements, subject to market conditions and applicable securities laws. Under the current share repurchase authorization, Brink’s is not obligated to repurchase any specific amount or number of shares. The company now has approximately $223 million remaining under this authorization.
Information about the company’s repurchases made through the end of the third quarter will be available in its Quarterly Report on Form 10-Q for the period ended Sept. 30, 2022.
