Diebold confirmed that it would buy a $1 billion 800 million cash plus stock to buy Wincor Nixdorf in Germany on Monday, and two companies have agreed to the acquisition.
After that, it will be the largest ATM manufacturer in the world.
Diebold disclosed that the company will start the acquisition early next year, Wincor Nixdorf shareholders share a share of 38.98 euros in cash and 0.434 shares of the Diebold common stock.
Diebold bought Wincor Nixdorf shares on the condition of 80% cash plus 20% shares, and the purchase price of Wincor was 54.21 euros per share in exchange for the Wincor share price before the merger agreement was announced.
The premium is 35%.
The takeover agreement was first published on the Wall Street journal as early as last Friday, and Diebold and Wincor Nixdorf both confirmed it on Monday. Wincor shares continued on Monday morning in Frankfurt stock market.
On Friday, the rally rose 6% to 48.31 euros, and Diebold shares closed 4% higher on Friday.
Once the acquisition is done, the merged new company will be renamed Diebold Nixdorf, expected to create a annual revenue of $5 billion 200 million, and the global ATM installation will be around 1 million, beyond the present.
NCR, the largest ATM manufacturer in the world.
Analysts have pointed out that Diebold and Wincor Nixdorf will be a combination of the ATM market leader, the global market is expanded to 35%, the city's share of 25% of the NCR to the status of the second.
According to NCR official website information, the company's global ATM installed capacity of 790 thousand units, last year's revenue of $6 billion 600 million.
Diebold and Wincor Nixdorf pointed out that after the merger of the two companies, the annual effect (synergies) should be up to US $160 million every year since 2018. Diebold's German executive matthys (Andy W. Mattes) will be responsible for leading Diebold Nixdorf.
The two major ATM manufacturers said last month that the two mergers would help them shift their business focus from a continued slide of price to ATM, instead of focusing on a booming software service.