FRANKFURT (Reuters) - U.S. cash dispensing machines maker Diebold (DBD.N) said it has gained the required level of support to go ahead with its 1.7 billion-euro ($1.9 billion) takeover of Wincor Nixdorf (WING.DE), sending the German rival’s shares almost 20 percent higher.
A combination of Diebold and Wincor would create a global market leader in automated teller machines, with a market share of about 35 percent, ahead of nearest rival NCR (NCR.N) with an estimated share of 25 percent, analysts have said.
Wincor shareholders owning 68.9 percent of the company had accepted Diebold’s offer by a March 22 deadline, more than the 67.6 percent it needed to proceed, Diebold said in a statement on Thursday.
Diebold has offered 38.98 euros in cash and 0.434 Diebold share per Wincor share.
Based on Diebold’s share price before the two companies announced in October that they were in exclusive talks, the offer represents an implied value of 52.50 euros per Wincor share, a premium of about 35 percent. Including debt, the offer values Wincor at 1.7 billion euros.
Shares in Wincor jumped about 20 percent to their highest level in almost two years, trading at 52.76 euros by 1343 GMT. Diebold jumped 7.5 percent to $29.04 in early U.S. trade.
Diebold said it expected to publish the final results of the acceptance period on March 29. It aims to close the acquisition in the European summer.
Reporting by Maria Sheahan; Editing by Ludwig Burger, Greg Mahlich