Payments processor NCR Voyix explores sale of digital banking unit, sources say

NCR Voyix

05/07/2024 19:12

By Milana Vinn and David French
       NEW YORK, July 5 (Reuters) - Payments processor NCR
Voyix  VYX.N  is exploring the sale of its digital banking
business which it hopes will fetch as much as $3 billion, people
familiar with the matter said.
    Atlanta, Georgia-based NCR Voyix has tapped Goldman Sachs
 GS.N  to solicit interest from potential buyers, which include
private equity firms and other payments processors, said the
sources, who requested anonymity as the discussions are
confidential. 
    Buyout firms TPG  TPG.O  and Warburg Pincus are among the
parties that have expressed interest in bidding for the digital
banking unit, which currently generates roughly 20% of NCR
Voyix's annual revenue, the sources said.
    They added that a deal is not guaranteed.
    NCR Voyix and Warburg did not immediately respond to comment
requests. Goldman and TPG declined to comment. 
    In October, NCR Corp broke into two separate publicly traded
companies, with NCR Voyix housing the digital commerce
operations and NCR Atleos  NATL.N  comprising the business
focused on ATMs. 
    NCR Voyix, which has lost roughly 20% of its value since it
started trading as a standalone company last year, currently has
a market capitalization of about $4.6 billion, including debt.
    The company, which processes about $227 billion worth of
transactions every month on its platform, derives most of its
revenue by providing software and payment systems to restaurants
and retailers. The digital banking unit provides operational
software to more than 450 banks and credit unions. 
    Prior to the separation, NCR Corp had explored divesting the
digital banking unit but shelved the sale process after failing
to agree on a price with potential buyers, the sources said.
    The sale of the digital banking unit would allow NCR Voyix
to pay down some of its debt pile, which stands at about $2.4
billion. The unit is on track to generate roughly $220 million
of earnings before interest, taxes, depreciation and
amortization (EBITDA) this year, the sources said, adding that
such businesses are typically valued at multiples of more than
12 times EBITDA. 

 (Reporting by Milana Vinn and David French in New York
Editing by Anirban Sen and Matthew Lewis)
 ((Milana.Vinn@thomsonreuters.com; Twitter: @MilanaVinn; Reuters
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