Rutland Partners Sells NoteMachine To Corsair Capital

NEW YORK and LONDON, Aug. 21, 2012 /PRNewswire/ -- Rutland Partners, the specialist turnaround and restructuring investor, and Corsair Capital, a leading specialist private equity firm focused on investing in the global financial services industry, announce the sale of NoteMachine, the leading independent Automated Teller Machine ("ATM") business in Europe, to funds managed by Corsair Capital and NoteMachine's management, who are retaining a significant shareholding in the company.

Founded in 2006 by CEO Peter McNamara, NoteMachine operates approximately 7,000 ATMs in the United Kingdom and, in addition, more than 500 ATMs in Germany.  NoteMachine has a 7% share of cash withdrawals in the United Kingdom and its ATMs dispense £5 billion of cash every year.

Paul Cartwright, Managing Partner of Rutland said: "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 United Kingdom 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."

Peter McNamara, Founder and Chief Executive Officer of NoteMachine, stated: "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 United Kingdom 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 capitalize on its market leading position in the United Kingdom and building on its successful presence in Germany."

Lord Davies of Abersoch, Vice Chairman of Corsair Capital who is based in London, who has joined the board of NoteMachine as non-executive Chairman, commented: "Corsair is excited to be acquiring NoteMachine, and to create a partnership with NoteMachine's excellent management team led by Peter in order to participate in the company's future success.  NoteMachine is at a key inflection point in its expansion, and we are confident that Corsair's global financial services market expertise will provide enhanced value to NoteMachine and its growth initiatives, including expansion into new markets.  This investment is consistent with Corsair's strategy to utilize its highly successful financial services sector experience to partner with a strong management team and to add value to the execution of the company's business strategy.  We view financial services infrastructure businesses and technology as central to the restructuring of the financial sector in the wake of the crisis and to the client service proposition."

NoteMachine has established itself as one of the leading ATM operators in the United Kingdom.  It has a vertically-integrated business model capable of delivering services across the entire value chain from installing, monitoring and servicing ATMs to providing cash via its in-house Cash-In-Transit facility.  Even with the emergence of alternative payment methods, cash use remains the most popular means of making consumer payments in the United Kingdom, and ATMs are the leading means of obtaining cash with total volume of ATM withdrawals in the United Kingdom growing by 3.2% in 2011 compared to 2010.

With the NoteMachine transaction completed, Rutland Fund I (£210m) 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 (£320m) of Pulse Home Products on 5 August 2012 and Attends Healthcare in February 2012.

The transaction was led on behalf of Rutland by Paul Cartwright and David Wingfield.  KPMG provided financial advice to Rutland, Deloitte provided financial advice to management and Taylor Wessing acted as legal advisor to both Rutland and management.

Clifford Chance acted as legal advisor to Corsair Capital.

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About Rutland Partners:

• Rutland Partners is a leading turnaround and restructuring investor which invests in underperforming UK companies to create stability, strategic change and improved performance.
• The value of such companies will usually range from £20 million to £200 million with Rutland committing between £10 million and £50 million per investment.
• Rutland considers all later stage transaction types across all sectors with the exception of property, hi-tech and bio-tech investments.
• Rutland has raised £530 million in committed capital across two funds: Rutland Fund (£210 million) and Rutland Fund II (£320 million).
• Rutland Partners LLP is authorised and regulated by the Financial Services Authority. 
• Rutland is a member of the British Venture Capital Association and a corporate sponsor of the Institute for Turnaround.
• Rutland Partners is supporting The Senahasa Trust in 2012, a small charity making a real difference at community level in Sri Lanka following the December 2004 Tsunami www.senahasa.org
• For more information on Rutland, please visit www.rutlandpartners.com

About Corsair Capital

Corsair Capital is one of the longest-standing private equity firms focused exclusively on investing in the global financial services industry.  Launched in 1992 in the aftermath of the U.S. savings and loan crisis, Corsair was the first fund of its size to invest in the financial services industry.  Over its history, Corsair developed an institutional knowledge of the key financial services subsectors including banking, insurance, asset management and specialty finance.

Since its inception, Corsair has invested across substantially all of the subsectors of the financial services industry in North America, Western Europe, and the Emerging Markets of Latin America, Asia, Central Europe and Africa.  Furthermore, over the past four decades Corsair's senior executives have advised governments and companies worldwide.  Corsair has developed an unrivalled global network of industry and governmental contacts which enables its professionals to anticipate sector trends and positions the firm for attractive investment opportunities.

More information about the firm may be accessed through the website www.corsair-capital.com.

About NoteMachine

• NoteMachine's vertically integrated business model consists of both owning and operating ATMs; as well as providing managed services operations for other ATM owners and banks.
• In the United Kingdom, NoteMachine owns c.7,000 ATMs the majority of which are operated in-house for service and cash filling.
• NoteMachine has 220 U.K. employees based both in Wales and throughout the United Kingdom supporting the network.
• In Germany, NoteMachine GmbH has recently made an acquisition bringing ATM numbers to 500, which makes NoteMachine GmbH one of the largest ATM deployers in Germany.
• NoteMachine is primarily based in Crickhowell, South Wales, with "hub" operations in North London and a new "hub" under development in Scotland.

SOURCE Corsair Capital