ATM mega deal: American ATM maker Diebold offers to buy German ATM player Wincor

by PaymentsJournal 0

The ATM machine market in the United States could be heading for a consolidation. This follows the reported proposal of acquisition by U.S. automated teller machine maker Diebold to German ATM maker Wincor Nixdorf.

According to statement by Wincor, the companies have entered into a non-binding agreement on a cash-and-share deal after valuing Wincor at 52.50 euros per share (AU$71.99).

The deal is expected to help the companies sharpen their focus on the growing digital-payments segment and move away from the declining ATM business. By joining hands, the duo hopes to boost investment in the development of software and IT services, reports The Wall Street Journal.
Diebold, in a communication confirmed that it has entered into a non-binding term sheet agreement with Wincor Nixdorf regarding a potential strategic business combination.

With today’s banks and credit unions undergoing significant – and in some cases historic – changes, the ATM is playing an increasing prominent role in the branch reconfiguration efforts at many financial institutions. At the same time, ATM manufacturers are trying to reconfigure their own organizations to expand beyond ATMs and drive future growth with a combination of ATMs, branch automation products, and digital banking solutions. Examples of expansion aspirations include this deal, and NCR’s acquisition of Digital Insight last year, with more M&A activity likely to occur in the industry in the future.

Overview by Ed O’ Brien, Director, Banking Channels Advisory Service at Mercator Advisory Group

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