The Post Office is weighing a bid for one of the UK’s largest independent ATM operators in a move that would expand its cashpoint empire, City AM can reveal.
The group, which facilitates the largest branch-based access-to-cash network in the United Kingdom, is exploring a deal for Notemachine after it was put up for sale its by parent company, Brink’s, sources said.
The Brink’s Company bought Notemachine in October 2022 for nearly $180m. The firm is one of the largest independent ATM providers in the UK, operating thousands of cash machines and supplying around 20 per cent of all cash dispensed across the country.
A potential deal would complement the Post Office’s banking hub model, which seeks to replace closed bank branches. It would allow the group to move beyond its brick-and-mortar store fronts and rapidly deploy community banking offerings in rural and high-traffic areas.
Over 30 banks and building societies pay a multi-million pound annual fee to the Post Office for network access, which allows millions of customers to use services at its sites.
Beauty parade underway after Brink’s deal
Lenders partnered with the Post Office in 2017 for “The Banking Framework”, and extended the collaboration for three-years in 2022. Last year, a new five-year deal was agreed to keep cash services running on the high street.
Brink’s – which specialises in cash and valuables management – announced a mega-deal to acquire global fintech firm NCR Atleos earlier this year for $6.6bn.
The deal was flagged by the UK’s competition watchdog, which warned a merger of the two entities would reduce ATM choices for businesses and potentially lead to higher fees for consumers accessing cash.
Brink’s said it would divest its ATM units in order to land the greenlight for the merger. In early October, the firm said the Competition Markets Authority had accepted the “proposed remedy” and it was engaging with potential suitors.
The Post Office and Brink’s declined to comment.