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Houston-based ATM management company Dolphin Debit has lengthened its roster of credit union clients through the acquisition of a competitor.
The company said this week that it finalized its acquisition of Cypress, Texas-based Outsource ATM, which primarily serves credit unions and banks in Texas and Louisiana. The deal added 65 financial institutions to Dolphin Debit's list of clients.
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"Our two companies had many similarities, so this has been a seamless transition for both companies and for our new clients," Dolphin Debit co-founder Gary Walston said. "As a larger company, we can offer vast resources in the form of people, expertise, and technical capabilities to the clients that we have inherited from Outsource."
Dolphin Debit owns and operates ATMs for financial institutions across the country, as well as drive-up ATMs at Walmart/Murphy USA locations in multiple states.
Earlier this year, the company also announced a strategic partnership with the Credit Union League of Connecticut, which Walston said would help the company further expand in the Northeast.
"We serve hundreds of client credit unions nationally, and as a Strategic Partner with the Credit Union League of Connecticut, we gain even greater visibility in the Northeast," Walston said. "This will help us connect with the many credit unions in the region that can benefit from our services."
Dolphin Debit also renewed its agreement to be a "strategic service partner" with the Mississippi Credit Union Association earlier this year. Outreach to the league's 70+ credit unions will be a significant part of the partnership, according to the company.
Outreach efforts appear to be paying off for Dolphin Debit. The company has posted double-digit growth in recent years, with year-over-year revenues spiking 27% in 2017 and 24% in 2018. It also reported significant new client growth in the mid-Atlantic and west coast in 2018, helping fuel the company's 22% rise in transactions on its ATM network and a 29% jump in the amount of cash dispensed.
"The primary reason that most credit unions moved their machines to Dolphin Debit in 2018 was compliance," Walston said in a February 2019 press release. "Early in the year, we saw some credit unions still playing catchup with the EMV mandate and even doing some late upgrades to Windows 7, but overall, their focus was on the coming need to switch over to Windows 10 in 2020."
The capital expenditures associated with ATMs has also brought more credit unions and other financial institutions onto the company's client list, according to Walston.
"When it comes to compliance, credit unions are increasingly realizing that the costs involved in upgrading machines nearing the end of their useful life can't be justified, and the cost to replace ATMs is even greater. That's when the value of outsourcing their ATM management becomes clear to them," he said.
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