Diebold Bidded $1.8 Billion For Wincor Nixdorf (NYSE:DBD)

Diebold had announced plans to acquire Wincor Nixdorf for about $1.8 billion in a cash-and-share deal. The American maker of automated teller machines and financial software offered the deal, including debt. Wincor Nixdorf is a German provider of information technology services to the financial industry and retailers. The merger would create the world’s largest maker of A.T.M.s.

Diebold would pay about $57.10 a share for Wincor Nixdorf under the terms of the deal. The figure represents a 35 percent premium over Wincor Nixdorf’s closing price in mid-October, when the talks were originally confirmed. As part of the deal, Wincor Nixdorf’s investors agree to sell at least 67.6 percent of the company’s outstanding shares to Diebold. Diebold has agreed to pay $43.48 in cash and 0.434 Diebold shares for each share of Wincor Nixdorf.

Diebold is strong in the Americas and Wincor Nixdorf is strong in Europe, so the merger would extend the reach of both companies. The new company will be well positioned for growth in high-value services and software, according to a statement from Andy W. Mattes, Diebold’s president and chief executive. The combined company would have had revenue of about $5.2 billion for the 12 months ended Sept. 30, excluding revenue from Diebold’s North America electronic security business, which it recently agreed to divest.

After the merger, the company would change its name to Diebold Nixdorf and have its registered offices in North Canton, Ohio, with another headquarters in Paderborn, Germany. Mr. Mattes will serve as chief executive of the combined company and Wincor Nixdorf chief executive Eckard Heidloff will serve as its president. The merged company’s shares would be listed in New York and Frankfurt. The companies expect to achieve about $160 million in annual cost savings after the completion of the deal.

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