NCR in talks to merge ATM business with Brink's -sources

The Brink's

11/10/2023 16:30

By Svea Herbst-Bayliss
       NEW YORK, Oct 10 (Reuters) - NCR Corp  NCR.N  is in
advanced discussions to merge its  automatic teller (ATM)
business with cash management firm Brink's Co  BCO.N , creating
a combined company worth close to $12 billion, including debt,
people familiar with the matter said.
    The deal, structured as a reverse morris trust, would allow
NCR to merge the ATM business at a $5.5 billion valuation, or
the equivalent of seven times 2024 earnings EBITDA (earnings
before interest, taxes, depreciation and amortization), with
Brink's and give a large chunk of the combined company to NCR
shareholders tax free, the sources said.
    Brink's, which is valued at about $6.2 billion including
debt, moves cash around the world for its clients and provides
ATM services among other things. It approached financial
technology and software company NCR in recent months with the
deal proposal, and negotiations could conclude as early as next
week, the sources said.
    The sources cautioned that an agreement is not certain and
asked not to be identified because the matter is confidential.
    Representatives for NCR and Brinks were not immediately
available for comment.
    

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