Post Office weighs NoteMachine bid to expand ATM network

The Post Office is considering buying UK cash machine operator NoteMachine from The Brink’s Company, potentially extending its cash services beyond branches and banking hubs. No proposed purchase price was reported.

NoteMachine operates thousands of ATMs and accounts for around 20% of cash dispensed across the country. Sources cited by City AM said the Post Office was exploring an acquisition after Brink’s put the business up for sale.

What happened

The potential acquisition would give the Post Office a substantial independent ATM operation alongside its existing branch-based services. It already provides the UK’s largest branch-based network for accessing cash.

An acquisition could support its banking hub model, which is intended to maintain services in communities where bank branches have closed. Cash machines would offer another way to serve rural locations and busy areas without relying solely on Post Office premises.

The reported interest remains exploratory: the source report did not establish that the Post Office had submitted a bid or reached an agreement with Brink’s.

The background

Brink’s, which specialises in managing cash and valuables, acquired NoteMachine in October 2022. Its decision to sell ATM operations follows a separate agreement, announced earlier this year, to buy global financial technology business NCR Atleos.

The Post Office’s banking relationships extend beyond cash machines. More than 30 banks and building societies pay annual fees worth millions of pounds for access to its network, allowing millions of their customers to carry out banking transactions at its sites.

Lenders established the Banking Framework partnership with the Post Office in 2017. They extended the arrangement for three years in 2022, before agreeing a new five-year deal last year to preserve high street cash services.

What people are saying

The Competition and Markets Authority raised concerns about the combination of Brink’s and NCR Atleos. The watchdog warned that the transaction could leave businesses with fewer ATM suppliers to choose from and potentially increase charges for consumers withdrawing cash.

Brink’s said it would dispose of its ATM businesses to secure regulatory clearance for the acquisition. In early October, the company said the regulator had accepted its proposed remedy and that discussions with prospective buyers were under way.

Neither the Post Office nor Brink’s commented on the reported interest in NoteMachine. There was therefore no public explanation from either company of how a Post Office acquisition might be structured or how the ATM network would be operated.

What happens next

The next stage is Brink’s engagement with potential purchasers as it seeks to fulfil the disposal commitment tied to its NCR Atleos transaction. The report gave no deadline for selecting a buyer or completing a NoteMachine sale.

For the Post Office, any expansion through NoteMachine depends on its exploratory interest progressing into an agreed acquisition. The report identified no other prospective buyers.