CMS Info Systems acquires ATM business of Logicash Solutions in India

Reflecting consolidation in the payments and cash management space, CMS Info Systems (CMS), backed by Baring Private Equity, has acquired the ATM business of Logicash Solutions (Logicash) in India.

After the acquisition, the number of its ATMs is 72,000 from 62,000 earlier.

The acquisition happened during the peak pandemic months and was completed with no loss of business or interruption in operations, said vice-chairman and wholetime director Rajiv Kaul.

NISA Group, predominantly in security management, had bought Logicash for about Rs 100 crore in 2016 and the valuation of the company has remained the same in the past years, sources said.

Besides CMS, the other players in ATM management include AGS Transact, SIS, and Writers Corp.

Apart from ATM and cash management, CMS does maintenance and card personalisation services.

Sion Investment Holdings, an affiliate of Baring Private Equity Asia, holds 100 per cent in the company.

CMS manages the flow and management of currency notes for the business points it serves every day -- from the time the Reserve Bank of India deposits cash in banks’ currency chests to when cash is deposited back in banks after going through the various stages of the cycle. CMS also services 53,000 retail outlets in India.

According to the RBI data, the banking system had 112,968 onsite ATMs and 96,142 off-site ATMs at end of August this year.

In addition, banks had 307,173 micro ATMs at the end of August.

On average CMS manages Rs 5,000 crore of cash a day in India. The company’s revenue stood at Rs 1,400 crore in FY20, increasing 20-25 per cent (year-on-year basis) due to new lines of business, acquisitions, managed services, and technology.