Rutland Partners, a turnaround and restructuring investor, has sold NoteMachine, an independent automated teller machine (ATM) business in Europe, to funds managed by private equity firm Corsair Capital and NoteMachine’s management, who are retaining a significant shareholding in the company.
Founded in 2006 by chief executive Peter McNamara, NoteMachine operates approximately 7,000 ATMs in the UK and more than 500 ATMs in Germany.
NoteMachine has a seven per cent share of cash withdrawals in the UK and its ATMs dispense GBP5bn of cash every year.
Paul Cartwright, managing partner of Rutland, says: "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 UK 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."
McNamara adds: "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 UK 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 capitalise on its market leading position in the UK and building on its successful presence in Germany."
With the NoteMachine transaction completed, Rutland Fund I (GBP210m) 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 (GBP320m) of Pulse Home Products on 5 August 2012 and Attends Healthcare in February 2012.