Diebold completes Wincor Nixdorf acquisition
ATM maker Diebold has completed its $1.8-billion acquisition of Wincor Nixdorf.
As Banking Technology reported in March, US-based Diebold announced it had met the tender condition for its German rival Wincor Nixdorf.
The combined organisation will begin operating as Diebold Nixdorf tomorrow (16 August). The market share of the combined company will be about 35%. NCR Corporation will be its nearest rival, and has around 25%.
In the UK, the Diebold and Wincor Nixdorf brands and operations will remain distinct pending completion of the Competition and Markets Authority’s review of the transaction.
In terms of the financial future, Diebold Nixdorf says it expects to report pro forma net debt/EBITDA of less than 4x as of 30 September 2016.
The combined organisation plans to deliver approximately $160 million of annual cost savings and is targeting a non-GAAP operating margin in excess of 9% by the end of the third full year following the closing of the takeover offer. It anticipates a net debt/EBITDA below 3x by the end of the third full year.
The combined company currently intends to pay a dividend per share at a rate of approximately one-third of Diebold’s current annual cash dividend per share, subject to market and other conditions, expected to be paid on a quarterly basis.