Brink's says not in deal talks with NCR (updated)

The Brink's

11/10/2023 20:00

(Recasts with Brink's denial)
    By Svea Herbst-Bayliss
       NEW YORK, Oct 11 (Reuters) - 
    Cash management firm Brink's Co  BCO.N  said on Wednesday
that it was not in talks with NCR Corp  NCR.N  about a
transaction, after Reuters reported that the two companies were
in talks to create a new automatic teller (ATM) business.
    Sources told Reuters earlier on Wednesday that NCR was in
advanced talks to combine its ATM business at a $5.5 billion
valuation with Brink's. 
    The deal, structured as a Reverse Morris Trust, would have
allowed NCR to give a large chunk of the combined company to NCR
shareholders tax free, the sources said.
    Brink's said in a statement that it "is not in discussions
about a possible strategic transaction with NCR Corp." A Brink's
spokesperson did not immediately respond to a request for
comment on whether these discussions had previously occurred.
NCR declined to comment.
        NCR said in September 2022 that it planned to separate
its digital commerce business from its ATM division in a
tax-free manner. The commerce business NCR will retain provides
payments software to the retail, hospitality and digital banking
industries.
  
        In total, NCR generated revenue of $7.8 billion in 2022,
up from $7.2 billion in 2021. 
  
        The company announced earlier on Wednesday that CEO
Michael Hayford would retire upon the separation of the
businesses.
  
        Based in Richmond, Virginia, Brink's makes most of its
revenue helping companies transport cash and operating ATMs. It
posted revenue of $4.5 billion in 2022, up from $4.2 billion in
2021.
  

 (Reporting by Svea Herbst-Bayliss; Editing by Mark Porter,
Diane Craft and Cynthia Osterman)
 ((svea.herbst@thomsonreuters.com; +617 233 2138; Reuters
Messaging: svea.herbst.thomsonreuters.com@reuters.net))