US ATM maker Diebold in tentative deal to buy German rival Wincor Nixdorf for $1.9 bn

US ATM maker Diebold Inc yesterday struck a tentative deal to buy its German rival Wincor Nixdorf AG for €1.7 billion ($1.9 billion) in order to expand its presence 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.

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.

Wincor Nixdorf was founded by Heinz Nixdorf as Nixdorf Computer in 1952.

Siemens AG bought the company in 1990 and renamed it Siemens Nixdorf Informationssysteme, and in 1988 again renamed it to Siemens Nixdorf Retail and Banking Systems GmbH in 1998.

US private equity firms Kohlberg Kravis Roberts and Goldman Sachs Capital Partners acquired the company in 1999 and renamed it Wincor Nixdorf.  The private equity firms took Wincor Nixdorf public in 2004.

Based in Paderborn, Wincor Nixdorf provides retail and retail banking hardware, software, and services. It manufactures self-service transaction systems such as ATMs, retail banking equipment, lottery terminals, postal terminals, software and provides services for global financial and commercial markets.

It has a presence in around 130 countries and has a workforce of around 9,000 people, of which, over half are based outside Germany.

The company has a market cap of €1.28 billion and posted net profit of €66 million last year on revenues of €2.43 billion. Wincor Nixdorf generates around 70 per cent of its 2 sales in Europe.

Diebold , based in North Canton, Ohio, posted revenues of $3.1 billion and net profit of $114 million.