FRANKFURT (Reuters) - U.S. automated teller machine maker Diebold Corp (DBD.N) is in talks about a possible acquisition of its troubled German rival Wincor Nixdorf (WING.DE), sources with knowledge of the negotiations told Reuters.
Wincor is being advised by Goldman Sachs and Diebold by JP Morgan, one source added, confirming a report by the Frankfurter Allgemeine Zeitung (FAZ) newspaper earlier on Tuesday. Goldman Sachs and JP Morgan declined to comment.
A Diebold spokesman declined to comment on “rumours and speculation”, while nobody from Wincor Nixdorf, which has a market capitalisation of 1.1 billion euros ($1.24 billion), was immediately available to comment.
Reuters reported in April that Wincor had asked investment banks to come up with ideas to secure the future of the group, including a potential sale to a private equity group, two people familiar with the matter said then.
The rise of online banking and e-commerce poses a structural challenge to Wincor, which has been struggling with low capital expenditures of banks eager to keep costs in check while emerging from the financial crisis.
Wincor announced in April it would cut 12 percent of its workforce and spin off its cashless payments business as part of a restructuring after warning it would miss its sales and operating profit targets for the year, citing deteriorating business in Russia and China, sluggish recovery in European investment spending and eroding hardware prices.
Wincor, which also competes with U.S.-based NCR Corp (NCR.N) and Japan’s Oki Electric (6703.T), specialises in banking systems like ATMs, accounting for roughly two thirds of its annual sales, and payment systems for retailers such as so-called Points of Sale (POS), which account for the rest.
Wincor’s shares, which are widely held, have lost 16 percent this year. Diebold shares were up 5.5 percent at 1857 GMT.
Founded by Heinz Nixdorf in 1952, the company was taken over by Siemens (SIEGn.DE) in 1990 before being acquired by buyout groups KKR (KKR.N) and Goldman Sachs Capital Partners (GS.N) in 1999. It was listed on the stock exchange in 2004 and the private equity groups have since sold their entire holdings.
Goldman Sachs co-chairman Alexander Dibelius acts as chairman of Wincor Nixdorf’s supervisory board.
Reporting by Alexander Huebner and Arno Schuetze, writing by Emma Thomasson; editing by Susan Thomas