Upon closing of the transaction, the combined company will be named Diebold Nixdorf, which will will be operated from headquarters in North Canton and Paderborn, Germany.
The combined company had pro forma revenue of around $5.2bn for the trailing 12 months ended 30 Sept 2015, excluding revenue attributable to Diebold’s North America electronic security business, which it recently agreed to divest.
Diebold Nixdorf will provide fully integrated and transformative solutions in value-added services,
branch automation and omnichannel experiences.
Under the business combination agreement, Wincor Nixdorf investors must agree to sell at least 67.6% of Wincor’s outstanding shares to Diebold.
Diebold will offer Wincor Nixdorf shareholders €38.98 in cash and 0.434 Diebold common shares per Wincor Nixdorf share. It has also agreed to launch a voluntary public tender offer for all of Wincor Nixdorf’s outstanding shares.
Wincor Nixdorf CEO Eckard Heidloff said: "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.
"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.
"Furthermore, we are convinced that our employees will benefit from being part of an even stronger, more global organization that is well positioned for the age of digitalization."
The companies are expected to achieve about $160m in annual cost savings through the deal.
Diebold president and CEO Andy W. Mattes said: "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."
Image: Diebold headquarters in North Canton, Ohio, in the US. Photo: courtesy of Diebold.
