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BOQ sells ATM assets to Macquarie

BOQ sells ATM assets to Macquarie

(22 July 2005 – Australia) Bank of Queensland has sold the ATM business it bought less than two years ago to Macquarie Bank for A$64 million, pocketing A$15.5 million from the deal and retaining branding rights. BOQ purchased ATM Solutions Australasia in September 2003 for A$18 million, making it the third largest ATM network owner in Australia and giving the bank an interstate footprint in advance of its branch expansion program.

The fee paid by Macquarie includes assumption of debt and other deductions held by ATM Solutions of A$22.5 million, meaning BOQ will pocket A$15.5 million after tax has been taken out.

The deal will see the assets sold to Macquarie while the BOQ branding will remain on some 1700 machines. BOQ will remain as transaction acquirer and cash servicer for ATM Solutions for the next five years and will also receive a branding fee from Macquarie for the same period.

The founder of ATM Solutions, Tim Wildash, has been made CEO of the ATM company under the new arrangement.

BOQ managing director David Liddy said as well as generating a strong profit, the alliance with Macquarie allowed the bank to have a branded ATM fleet and an alternative revenue stream through acquiring income.

He said the strategic objective for the bank had been achieved and there was no need to continue ownership of the ATM fleet.

Liddy said there were also capital reasons for selling ATM Solutions.

"Currently the bank is required to hold Tier 1 capital of approximately A$20 million against the investment. This alliance with Macquarie frees up that capital while ensuring continued access for our customers to a growing ATM network," he said.

BOQ has grown the ATM fleet from 900 at the time of purchasing ATM Solutions to more than 2,400 across the country.

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