Digital commerce solutions provider NCR Voyix has agreed to divest its cloud-based digital banking business to an affiliate of Veritas Capital in an all-cash deal worth $2.45bn.
The transaction will also include a future additional contingent consideration of up to $100m.
NCR Voyix’s digital banking unit offers a digital-first product suite aimed at transforming consumer and business banking. It delivers a seamless, secure, and top-rated user experience across all channels.
Currently, it is said to serve over 1,300 top-tier financial institutions and more than 20 million active users.
NCR Voyix stated that the business is set to strengthen its market position and utilise its advanced platform to attract new customers and develop innovative products. These efforts aim to enhance its value proposition as an independent entity.
Veritas Capital CEO and managing partner Ramzi Musallam said: “The digital-first banking platform is a pioneer in mobile and online banking with a superior value proposition and significant runway for growth.
“We believe the platform represents a compelling opportunity to invest in a set of mission-critical solutions that will empower both community and enterprise financial institutions and provide new and innovative banking tools to millions of users.”
According to NCR Voyix, the divestment is in line with its ongoing strategies to streamline its operations to focus specifically on its core software and services offerings for restaurants and retailers globally.
The digital commerce solutions provider plans to utilise the proceeds of the transaction to expedite the achievement of certain financial objectives. These include de-levering the balance sheet to facilitate greater strategic investment in the company’s core businesses.
NCR Voyix CEO David Wilkinson said: “We believe that Veritas, as a leading technology investor, is the ideal owner of our digital banking business, as they will continue to invest in market-leading products and solutions to meet the needs of our valued financial institution customers.
“This transaction allows us to drive value for our shareholders by strengthening our financial position and focusing on our core restaurant and retail customers.”
NCR Voyix’s board of directors has approved the deal. Subject to customary conditions, including regulatory approvals, the transaction is anticipated to be completed by the end of this year.
For the transaction, Goldman Sachs & Co was the financial adviser while King & Spalding served as legal counsel to NCR Voyix. Evercore acted as financial adviser and Gibson, Dunn & Crutcher is the legal counsel to Veritas Capital.
NCR Voyix was originally part of NCR before the latter split into two separate publicly traded companies in 2023. Currently, NCR Voyix focuses on digital commerce while the other entity NCR Atleos specialises in automatic teller machines (ATMs).
