China Daily Online, November 24 (Xinlian) According to the Nihon Keizai Shimbun, the world's second largest automatic teller machine (ATM) manufacturer Diebold Inc. and the third largest manufacturer, Germany, Wincor Nixdorf On November 23, it was announced that the two parties had reached an agreement on the acquisition of Deli Duofu by Diebold. The acquisition amount is approximately $1.8 billion. The new company will exceed the US NCR to become the industry's largest company with 34% of ATM's global share.
In the ATM industry, the popularity of e-commerce has led to weak growth in investment in developed countries. On the one hand, the market in emerging market countries has continued to expand. The two companies will expand their scale to increase profitability.
The agreement between the two companies is that Diebold pays 38.98 euros per share of cash and 0.434 shares of common stock to Dieledo shareholders. Diebold will implement TOB (Public Tender Offer) from January to March 2016, and strive to acquire the entire equity.
The new company will be named Diebold Nixdorf and its headquarters will be located in Ohio, USA. Sales alone will total $5.2 billion and will have a high market share in Europe and the United States.
Previously, according to Reuters Frankfurt on October 18th - US ATM (automated teller machine / ATM) manufacturer Diebold Inc (DBD.N) and German competitor Wincor Nixdorf AG (WING.DE) said on Saturday that the former bid 1.7 billion euros ($1.9 billion) to acquire the latter.
Diebold offered a cash and stock purchase of 52.50 euros per share for WincorNixdorf, a 35% premium to Wincor's Friday closing price. The two companies said they have reached an agreement on a potential strategy.
Reuters reported in April that Wincor has asked a number of investment banks to make suggestions for their future, including the possibility of selling the company, etc., and in June it was reported that Wincor is negotiating with Diebold.
In the third quarter of the fiscal year, Wincor Nixdorf suffered an operating loss and is in the process of layoffs in response to factors such as weak retail banking in Germany, deteriorating business environment in Russia and China, weak recovery in European investment spending, and falling ATM prices.
The rise of online banking and e-commerce poses a challenge to operators such as Wincor; as bankers try to control costs while still coping with the effects of the financial crisis, capital investment has been kept at a low level, allowing Wincor and other operators to cope .
According to two well-informed insiders, the final trading conditions may be finalized in the next two weeks. They said that the purchase price of 52.50 euros will not change, but how much stock Winco shareholders can get will depend on the price fluctuation of Diebold.
Sources pointed out that the acquisition was mainly based on cash payments, but they refused to explain the ratio of cash to stocks.
Wincor is the world's third-largest ATM manufacturer. The top two players are NCRCorp (NCR.N) and Diebold; Diebold has a market capitalization of $2.2 billion, and its market share is not far from Wincor.
Wincor has a high market share in Europe, and Diebold's main business focus is in the US, so the two companies expect that the level of antitrust regulators will not encounter too many problems.