- Cash and stock offer of 52.50 euros a share is 35% premium
- Deal would give Diebold much larger business in Europe
Diebold Inc. said it offered 1.57 billion euros ($1.78 billion) to acquire Wincor Nixdorf AG, potentially creating a manufacturer of cash machines and security systems with about $6 billion in sales.
The companies reached a non-binding agreement on Sept. 24 to hold a public tender offer for all of Wincor’s outstanding stock at 52.50 euros a share, the companies said Saturday in a joint statement. That would be a 35 percent premium to Wincor’s closing price of 38.90 euros on Friday. The offer, a combination of cash and Diebold shares, depends on both sides completing their due diligence, the companies said.
Diebold, based in North Canton, Ohio, contacted Wincor about an acquisition in June, a person familiar with the matter said at the time. Now Diebold has a potential deal in place. Buying Wincor, based in Paderborn, Germany, would give Diebold a bigger presence in Europe, where it now generates less than 15 percent of its revenue. Wincor gets about 70 percent of its 2.47 billion euros in total sales there.
This would mark Diebold’s largest acquisition, topping the purchase of Diebold Procomp for $225 million in 1999, according to data compiled by Bloomberg. Founded in 1859, Diebold has about 16,000 employees globally.
Wincor builds hardware and software for banks and retailers, including ATMs and cash registers. The company used to be owned by German engineering giant Siemens AG before it was sold to private-equity investors in 1999. It held an initial public offering in 2004 and currently operates in 130 countries with about 9,000 employees.
In April, Wincor announced a restructuring program including 1,100 job cuts amid declining sales and profit, citing slowing sales of hardware and issues in Russia and China.