Enterprise tech provider NCR to split into separate digital commerce and ATM firms
US enterprise tech provider NCR Corporation is to split into two publicly traded firms – one focused on digital commerce, the other on ATMs – by the end of 2023.
NCR says the split will “unlock value” for the company’s shareholders by creating two firms that can pursue independent growth strategies.
CEO Michael Hayford says the separation of NCR’s businesses will create “two strong companies at scale”, enabling each to simplify operations and provide investors with a better ability to value each business.
The digital commerce company will leverage NCR’s software-led model “to continue transforming, connecting and running global retail, hospitality and digital banking”.
The ATM company will focus on delivering its ‘ATM-as-a-Service’ offering to the firm’s existing customer base across banks and retailers and will look to leverage new ATM transaction types such as digital currency solutions to drive market growth. The company will also “continue shifting to a highly recurring revenue model to drive stable cash flow and capital returns to shareholders”.
NCR executive chairman, board of directors, Frank Martire says: “Throughout the strategic review process, we received material interest in a whole company sale of NCR, as well as interest in various individual segments of our business.”
However, Martire says it became “increasingly clear” to the NCR board that given the current market volatility, the firm could not find a buyer that reflects an “appropriate and acceptable value” for NCR shareholders.