IBS Journal December 2015


Diebold takes over rival Wincor Nixdorf in $1.8bn deal


The closing price marks an


increase of 40% since Diebold and Wincor, two of the largest compa- nies in the ATM industry, started talks. The market share of the


combined company, which will be called Diebold Nixdorf, will sit at around 35%, ahead of NCR Corporation, which holds an esti- mated 25%. The deal will also give Diebold a far bigger presence in Europe, which had previously accounted for less than 15% of its sales.


No, nada, Nix Wincor Nixdorf had been reporting steadily falling profits for the first nine months of 2015, with its operating profit dropping a full 57% to €40 million. It also axed 1,100 jobs in April as a measure to reduce ex- penditure and stem the effects of declining sales. The company had started to allocate


significant resources to shifting its business practices towards software. Diebold has said that it will continue to


support this switchover and that there will be no further job cuts at its German rival for the foreseeable future. The outlay for the acquisition eclipses


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Diebold’s previous largest takeover from 1999, when it purchased Pro- comp for $225 million.


Going soft Both companies have moved at a time when market interest in financial hardware is failing. Wincor Nixdorf CEO Eckard Heidloff said in April that ‘the trend towards digitisation embraced by both banks and retailers has added to the momentum of change [from ATMs and hardware], with software and high-end service solutions playing a prominent role’.


Alex Hamilton


Diebold debuts a double in ATM innovation


Diebold has launched a screen-less, self-service Irving concept; and Janus – a dual-sided self-service terminal capable of serving two consumers at the same time. The new concepts were debuted


at the recent Money20/20 conference in Las Vegas. ‘While digital channels contin-


ue to evolve, cash will continue to have a role in consumer transactions. That’s where Diebold comes into play – to bridge the digital and phys- ical worlds of cash in unprecedent- ed ways,’ says Frank Natoli, Diebold executive vice-president, self-service technology. The first one dispenses cash with


no card required, and Diebold says Citi is testing the Irving concept at its innovation lab in New York. Diebold describes it as bring


Diebold 1063ix ©redjar, Flickr


your own device (BYOD) access – meaning the card reader, PIN pad and physical screen are ‘completely eliminated’, instead, transactions are


scheduled using the screen on the consumer’s mobile device. Consumers are identified


through near field communica- tion (NFC) as they walk up to the concept, and are delivered instant access to cash through contact- less, mobile banking methods such as quick response (QR) codes, NFC and iris-scan biometric technology. Diebold’s second banking


concept, Janus, features shared modules that serve consumers on both sides of the unit ‘with- out compromising security’; mobile-enabled access through NFC or QR code technology, which removes ‘traditional card readers and subsequent card fraud’; and video conferencing is available for immediate assistance with a teller for basic questions or to complete more complex transactions.


Antony Peyton


26


© IBS Intelligence 2015


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