Diebold Inc., a leading manufacturers of automated teller machines (ATM), launched $1.8 billion cash and share offer for German rival Wincor Nixdorf. If the German company accepts the offer, they together will become the largest ATM makers.
Diebold launched an offer of 38.98 euros in cash for every share and 0.434 of a common Diebold share for Wincor Nixdorf. They entered exclusive talks on October 17 this year as stated by both companies. On the basis of the share price of Diebold before the announcement, the offer represents an estimated value of 52.50 per Wincor share, which is a premium of nearly 35 percent. The offer sums up to 1.7 billion euros or $1.8 billion.
As per the pre-market data at broker Lang & Schwarz, Wincor Nixdorf shares were expected to open 11.3 percent higher. If this deal completes successfully, the combination of Diebold and Wincor Nixdorf will become a global leader in ATM maker industry, followed by NCR, the number two company in a global market. The combination will dominate the global market with 35% of total market share, followed by 25% of NCR.
The deal is subjected to an acceptance rate of up to 67.6 percent of Wincor shares which will yield annual cost savings of at least $160 million. As Wincor is suffering from declining businesses in China & Russia, a declining retail banking market in Germany, and a slow recovery in European investments spending and falling prices for ATMs, it is struggling to secure its future. It has not paid dividend for this year and had to restructure its business and cut jobs.
Many studies have been done based on current and future market status of ATM machine industry. Recently, Prof Research Report has added a new report “The Global and Chinese ATM Machine Industry, 2010-2020 Market Research Report.” The report provides an in-depth analysis of development trend, detailed segmentation and information of key manufacturers of global ATM machine industry with a spotlight on Chinese market.