Sainsbury’s is to sell its ATM business to one of the UK’s leading ATM operators, Brink’s Company NoteMachine in a bid to simplify its core banking business and reduce costs.

Under the terms of the deal, NoteMachine will assume ownership and management of the supermarket’s ATM business, which includes around 1,350 ATMs nationwide.

All ATMs will remain open and in position at the existing sites, with customers still able to receive free access to cash with no change to how they currently withdraw their money.

The long-term partnership and transition of ownership is expected to be completed by May 2025, providing Sainsbury’s with a shared commission income stream.

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It comes as earlier this year, Sainsbury’s agreed to sell most of its banking arm to Natwest Group as part of a phased withdrawal.

Sainsbury’s chief executive Simon Roberts said: “We are really pleased that we can keep offering our customers free access to cash at all of our existing locations while also simplifying our banking business and reducing our costs. We’re confident that NoteMachine is the right partner for us and our customers.”

NoteMachine chief executive Steve Makaritis added: “This agreement aligns perfectly with our mission to make banking easier, more convenient and accessible for all. By expanding our ATM network, we are taking another step toward providing exceptional service, whether in urban or rural areas.

“We are excited to be working with Sainsbury’s to continue to provide this valuable service across the UK as we strive for continued access to cash and other banking options. We look forward to building on the strengths of both companies as we continue to innovate and enhance the way customers access financial services.”