NORTH CANTON, Ohio and PADERBORN, Germany -- Diebold Inc., a global leader in providing self-service delivery, value-added services and software primarily to the financial industry, and Wincor Nixdorf AG, a leading provider of IT solutions and services to banks and the retail industry, on Wednesday announced that the companies have entered into a business combination agreement.
The combined company will build upon the two companies’ shared vision that services and software drive the consumer experience and enable customers to differentiate themselves in an evolving industry. The combined company will pursue a growing total-addressable market of approximately $60 billion, according to independent market estimates and Diebold internal analysis.
“The rate of change we see in our industry is unprecedented, and by leveraging innovative solutions and talent from both organizations, we will have the scale, strength and flexibility to help our customers through their own business transformation,” said Andy W. Mattes, Diebold president and chief executive officer. “Our new company will be well-positioned for growth in high-value services and software—particularly in the areas of managed services, branch automation, mobile and omnichannel solutions—across a broader customer base.
“This combination was made possible through the successes we have had and continue to create in the Diebold 2.0 transformation plan. We have a history of collaboration with Wincor Nixdorf, and our shared approach will help drive a successful integration and minimize disruption.”
Diebold Inc. provides the technology, software and services that connect people around the world with their money, bridging the physical and digital worlds of cash conveniently, securely and efficiently.
Wincor Nixdorf, meanwhile, is one of the world’s leading providers of IT solutions and services to retail banks and the retail industry. The main focus of the group’s comprehensive portfolio lies on business process optimization, especially in the branch operations of both sectors.
“The combination of Diebold and Wincor Nixdorf is an exciting opportunity for both companies to shape the future of banking and retail solutions. Together, we can even better leverage the potential of a rapidly changing banking and retail market due to our strong combined R&D expertise,” said Eckard Heidloff, CEO, Wincor Nixdorf. “With our complementary geographic presence, we will be even closer to customers worldwide. Our common view of omnichannel software solutions will enable us to create a best-in-class customer experience to support banks and retailers to cope with challenges of digitalization.”
Pursuant to the business combination agreement, Diebold will launch a voluntary public tender offer to all shareholders of Wincor Nixdorf. The transaction values Wincor Nixdorf, including net debt, at approximately $1.8 billion. The combined company had pro forma revenue of approximately $5.2 billion for the trailing 12 months ended Sept. 30, 2015, excluding revenue attributable to Diebold’s North America electronic security business, which it recently agreed to divest.
Following completion of the offer and subject to certain approvals, the combined company will be named Diebold Nixdorf, with common shares publicly listed on the New York Stock Exchange and the Frankfurt Stock Exchange.
The combined company will have registered offices in North Canton, Ohio, and will be operated from headquarters in North Canton and Paderborn, Germany.
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