Blackstone Nears Deal to Take Minority Stake in ATM Maker NCR

NCR said Blackstone Group LP is purchasing perpetual preferred stock through its investment, which is convertible into shares of common stock at a conversion price of $30 per share.

The deal is anticipated to be completed by the end of the year.

“After concluding a comprehensive review of strategic alternatives, the NCR Board has determined that executing our strategic plan with Blackstone’s assistance is the best way to accelerate NCR’s transformation and build long-term shareholder value”, commented NCR Chairman and CEO Bill Nuti.

The investment comes as NCR – and the ATM market in general – comes to terms with a rapidly changing landscape. Along with several other large PE firms, the investment manager explored a leveraged buyout of NCR earlier this year, but was unable to reach an agreement.

NCR was founded in 1884, and manufactures so point-of-sale devices as well as cash registers and cash dispensing machines.

We rate NCR CORP (NCR) a HOLD.

The deadline to nominate directors to NCR’s board for 2016 is Friday. The share repurchases will come in the form of a modified Dutch Auction tender offer at an expected price range between $26 and $29.50 a share, beginning November 13.

“This long-term equity investment is an attractive security that will benefit our company and shareholders alike”, said NCR CFO Bob Fishman. Her award-winning work has appeared in trade and consumer media in the United States and internationally.