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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