NCR Is Nearing a Deal to Buy ATM Operator Cardtronics

The investment firms—private-equity giant

Apollo Global Management Inc.

APO -2.89%

and Hudson Executive Capital LP—declined to raise their prior offer of $35 a share, paving the way for the impending deal.

Cardtronics, with 285,000 ATMs in 10 countries, is one of the largest cash-machine operators in the world. A deal would pair the company with Atlanta-based NCR, which makes ATMs as well as point-of-sale systems and self-service kiosks for businesses such as retailers and restaurants.

Cardtronics had a market value of about $1.8 billion Friday afternoon, while NCR’s was $4.3 billion.

Cardtronics shares closed Friday at $40.86, indicating the market was hoping for a prolonged bidding war.

NCR made the unsolicited bid after Houston-based Cardtronics on Dec. 15 announced a deal to be sold to Apollo and Hudson Executive. Cardtronics disclosed the bid and entered into discussions with NCR earlier this month.

Once the NCR offer was deemed superior last week, Apollo and Hudson Executive had five days to increase theirs. They opted to walk away instead and receive a breakup fee of more than $30 million as the merger agreement stipulates, the people said.

NCR, formerly known as National Cash Register and once owned by AT&T, has been pivoting its business toward software sales and other recurring services, which a deal with Cardtronics could accelerate.

Hudson Executive owns a roughly 19% stake in Cardtronics. Its founder, former JPMorgan Chase & Co. finance chief

Douglas Braunstein,

sits on the board and has recused himself from sale discussions, the company has said.

Write to Cara Lombardo at cara.lombardo@wsj.com and Miriam Gottfried at Miriam.Gottfried@wsj.com