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Brink’s Company Snaps Up PAI For $213M; Shares Gain

The Brink’s Company announced the acquisition of PAI Inc, an ATM services provider, for $213 million. Shares of the cash management and route-based secure logistics and payment solutions provider closed 1.4% higher on Tuesday. Notably, the transaction closed on April 1.

As a result of the deal, The Brink’s Company (BCO) will gain access to an SaaS-based technology platform used to enhance ATM network performance.

PAI is likely to deliver revenue and adjusted EBITDA of about $320 million and $30 million, respectively, on a current full-year basis. Meanwhile, it is expected to add approximately $240 million of revenue and $22 million of adjusted EBITDA to BCO’s earnings in 2021. 

The Brink’s Company President and CEO, Doug Pertz, said, “PAI brings a strong management team led by David Dove, robust technology, and a scalable, asset-light business model that complements our existing capabilities.”

Likewise, The Brink’s Company intends to enhance the delivery of digital solutions that make full-service ATM management and outsourcing much easier. Additionally, the company is well-positioned to offer a complete range of ATM services, including full services outsourcing. (See The Brink’s Company stock analysis on TipRanks)

Earlier, Goldman Sachs analyst George Tong reinitiated coverage on The Brink’s Company with a Buy rating and a price target of $92 (13% upside potential). Tong expects the company to benefit from strategic initiatives that should help accelerate organic revenue growth.

The Moderate Buy analyst consensus is based on 2 Buys. With shares up a stellar 88.3% over the past year, the average analyst price target is $94 and implies 15.5% upside potential to current levels.

Furthermore, from TipRanks’ Smart Score ranking, BCO scores an 8 out of 10, suggesting the stock is well-positioned to outperform market expectations.

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Neha Gupta
Neha Gupta has worked in the financial industry for over six years. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) designation. She has successfully completed Level II of her CFA.