Diebold Inc To Acquire Wincor Nixdorf for $1.7 billion, Shares Higher

USA automated teller machine maker Diebold Inc (DBD.N) has offered to buy rival Wincor Nixdorf AG (WING.DE) of Germany for 1.7 billion euros ($1.9 billion), the companies said on Saturday.

Such a business combination would be implemented through a public tender offer for all issued shares of Wincor Nixdorf.

The ratio of the cash and stock component of the offer is still to be negotiated and may be finalised in the next two weeks after due diligence.

Diebold wants to tie with Wincor to create a bigger competitor to market leader NCR (NCR.N).

The acquisition would be paid for in cash and Diebold shares, said Diebold, which is based in North Canton, Ohio.

The evolving mobile payment systems poses a challenge to the likes of Wincor and Diebold.

Diebold is a little over mid-way through a three-year restructuring program to cut costs, improve its gross margin and shift its business mix.

Shares of Diebold rose 6.8% to $35.74 at 10:39 a.m.in New York on Monday.

But several mature markets will however continue to decline, research and consulting firm RBR said last week, adding that it saw growth mainly in the Middle East and Africa. And both companies would be able to step up software and IT development, in addition to giving Diebold greater presence beyond the United States, particularly in Europe.

Under the terms of the agreed deal, Diebold is offering to pay €52.50 per share in cash and stock, a 35-per cent premium to Wincor Nixdorf ” s Friday closing price.

Several analysts said shareholders should take the money: “We do not believe that Wincor Nixdorf would reach such a price level in the next 12 months on a stand-alone basis”, wrote analysts at Bankhaus Lampe.