Industrials

Is Cardtronics Getting Enough From This Acquisition Offer?

Cardtronics PLC (NASDAQ: CATM) was one of the biggest movers on Wednesday after the company confirmed that it received an offer to be bought out. Specifically, the offer comes from funds managed by affiliates of Apollo Global Management and Hudson Executive Capital.

The bidders noted that they are willing to pay $31 per share in an all-cash transaction. At the current price of roughly $34 per share, the company has a market cap of $1.5 billion.

Comparatively, Cardtronics would be looking at premiums of 42.7% and 36.4%, versus the 50-day and 200-day moving averages of $21.72 and $22.72, respectively.

No specific timetable has been set, and the review of this proposal is still subject to whether or not Cardtronics’ management is in fact interested. As it stands now, the company does not intend to make any further public comments regarding this matter, unless and until the Cardtronics board of directors approves a specific course of action.

As Douglas Braunstein is both the founder and managing partner of Hudson Executive Capital, as well as a board member for Cardtronics, he has recused himself from any discussions that the Cardtronics’ board of directors has had regarding any transaction. The other members of the Cardtronics board of directors will review and assess the terms of the proposal.

Cardtronics has retained Goldman Sachs as its financial advisor and Weil, Gotshal & Manges and Ashurst as its legal advisors.

Excluding Wednesday’s move, Cardtronics stock had underperformed the broad markets with a retreat of about 42% year to date. In the past 52 weeks, the share price was down closer to 36%.

Cardtronics stock traded up about 31% to $33.92 on Wednesday, in a 52-week range of $15.71 to $47.41. Analysts have a consensus price target of $32.42.