Customers Limited (CUS), Australia’s leading owner/operator of ATMs, announced a five-year agreement with Bank of Queensland Limited (BOQ) to provide a full ATM managed service to the bank across more than 400 terminals. The agreement, which followed a competitive tender process, will see ATM Solutions Australasia Pty Ltd (a wholly owned subsidiary of Customers Limited) manage a core fleet of around 100 BOQ off-branch ATMs throughout Australia as part of the rediATM network. In addition to the off-branch locations, the agreement also provides for more than 300 terminals within Customers’ existing fleet to transfer to a fully outsourced model with BOQ. As a result, Customers will receive predictable monthly revenue on these terminals for the next five years, replacing their current transaction-based revenue. Under the agreement, Customers will deliver a fully outsourced managed service, including ATM hardware, software, maintenance, cash servicing and 24-hour technical support, with all terminals to carry the rediATM brand.
The agreement represents one of the largest ATM asset expansions by an Australian financial institution in several years. BOQ and rediATM’s 8 million cardholders will now have even greater access to direct charge free ATMs in more convenient locations across Australia. The agreement is anticipated to produce aggregate incremental uplift in earnings before interest, taxes, depreciation and amortisation (EBITDA) for Customers of between $5 million – $6 million over the five-year period.
Customers Managing Director, Tim Wildash, said the agreement was a landmark event for the company in its diversification into the direct provision and operation of financial institution ATMs and services, whilst providing for fixed annuity-style service revenues to the company. “As a fundamental plank of Customers’ growth strategy, we announced a partnership with Nautilus Hyosung just over 18 months ago that was focused at creating a unique value proposition to financial institutions. This proposition aims to help drive the future landscape of Customers’ growth and of ATM service and provision for Australia’s financial institutions. “Today’s announcement represents the first major milestone in our diversification and growth journey, and most importantly recognition of the competitive offering that Customers is able to provide to Australia’s main financial institutions and their cardholders.
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