Online bank and broker E*Trade has agreed to sell the assets of its ATM operations subsidiary to Cardtronics for $106 million cash.
E*Trade, which expects to record a pre-tax gain of approximately $55 million from the transaction, says it will retain certain branding rights across the network. The deal will add 15,000 machines to Texas-based Cardtronics existing estate of 12,000 ATMs.
Explaining the decision to sell, Mitchell Caplan, E*Trade CEO, says: "While we believe that the ATM network is an important distribution channel for our customers, we have determined that operating an ATM network is not essential to providing this customer benefit."
The firm says it will continue to offer banking customers surcharge-free ATM access by refunding fees incurred at any ATM worldwide.
Additionally, he says, the company continues to explore deposit taking options at E*Trade Financial Centres as well as directly from customer homes and places of business.
Arlen Gelbard, chief banking officer and president, E*Trade Bank, adds: "Cheque truncation legislation is changing how companies look at deposit taking. We will be at the forefront of this change."