Cash machines in Co-operative Food stores will no longer be operated by the Co-operative Bank by the middle of 2015.
The Co-operative Group’s deal with the Bank to operate 1,900 ATMs has come to a premature end, following the completed acquisition of the co-operative’s security services arm Sunwin on 3 November.
Global ATM operator Cardtronics bought the Sunwin division for £35m, and with it acquired the exclusive rights to operate cash machines in Co-operative Group stores until 2022. It also gives Cardtronics the option to install more machines in hundreds of other Group stores.
An additional £6.5m has also been paid to the Group for the early commencement of the agreement. Originally scheduled to start in January 2016, the migration will start this year and continue for approximately six months after the Group ended the Co-operative Bank’s agreement early.
The Bank will also receive £6.4m from Cardtronics to purchase the ATM equipment, while the Group will pay £8.2m for the premature ending of the contract.
Cash machines will remain free to use and be branded Co-operative Food and Cashzone, the consumer-facing brand of Cardtronics in the UK.