US ATM maker Diebold has confirmed it's offering to take over Germany's Wincor Nixdorf in a deal that would see a merger between the global No. 2 and No. 3 in the sector. Diebold said it expected synergy effects.
Diebold's takeover bid values Wincor Nixdorf at more than 1.7 billion euros ($1.9 billion), with the US ATM maker reported to be offering 54.31 euros per Nixdorf share.
Investors welcomed the offer, with shares of the MDAX-listed German firm surging more than 6 percent in early Monday trading.
Wincor Nixdorf has been struggling to return to profitability lately. It had launched a restructuring program which among other things envisaged a reduction of its global workforce by 1,100 from a total of 9,200 employees.
Better positioned to serve customers
If the transaction goes ahead as scheduled, the two companies would have a combined annual turnover of 4.8 billion euros. After the merger, the firm would be called Diebold Nixdorf to be headquartered in North Canton, Ohio, in the US.
Diebold CEO Andy Mattes said the merger would boost the company's regional presence and would reduce annual costs by about 160 million euros due to synergy effects.
Diebold said there would be no substantial additional layoffs at Wincor Nixdorf in Germany beyond the jobs to be slashed under the current restructuring scheme.
hg/tko (Reuters, AFP)