Diebold Offer for Wincor Nixdorf Values Company at $1.8 Billion
23 November 2015 - 7:40PM
Dow Jones News
FRANKFURT—U.S. automated teller machine maker Diebold Inc. and
its German rival Wincor Nixdorf AG said Monday they have agreed on
the core elements of a merger, with Diebold offering Wincor Nixdorf
owners a cash and share deal.
The companies' statement confirms an article in The Wall Street
Journal on Friday.
The transaction values Wincor Nixdorf at around $1.8 billion,
including net debt, the two companies said. The deal will result in
around $160 million in annual cash savings, they said.
Diebold will offer €38.98 ($41.41) in cash, plus 0.434 of a
Diebold common share for each Wincor Nixdorf share.
The move comes more than four weeks after Diebold and Wincor
announced they had entered into a nonbinding agreement that would
combine the industry's No. 2 and No. 3 companies by revenue.
Because Diebold's share price has risen by about 19% since then,
the share component that Wincor investors would receive improves
accordingly.
The companies said in October that a combination would enable
them to sharpen their focus on the growing digital-payments segment
and move away from ATMs, for which prices are declining. By joining
forces, they could boost investment into the development of
software and IT services, which is costly.
It should also boost Diebold's European presence, having
previously concentrated on North America.
The agreement has been approved by Diebold's board of directors
and Wincor Nixdorf's supervisory board. Diebold will launch a
voluntary offer for all of Wincor Nixdorf shares.
Diebold expects to raise capital amounting to around $2.8
billion to fund the transaction, refinance debt, and provide
liquidity for the merged entity.
Write to Monica Houston-Waesch at nikki.houston@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
November 23, 2015 03:25 ET (08:25 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
Diebold Nixdorf (NYSE:DBD)
Historical Stock Chart
From Apr 2024 to May 2024
Diebold Nixdorf (NYSE:DBD)
Historical Stock Chart
From May 2023 to May 2024