Under the terms of the agreement, Diebold will offer Wincor Nixdorf shareholders €38.98 in cash plus 0.434 Diebold common shares per Wincor Nixdorf share, representing a premium of approximately 35% over the German firm’s closing share price in mid-October when the deal was first mooted. The combined company will operate under the moniker Diebold Nixdorf.

In its latest set of interims, Wincor Nixdorf reported a a continued decline in net sales for the first nine months of the year and a significant fall in operating profits. Operating profit (EBITA) after restructuring expenses amounted to €40 million (€92 million), down 57% on the figure posted for the same period a year ago.

The company has allocated €80 million to a restructuring programme this year that aims to boost its software business while drastically reducing its reliance on hardware sales.

Diebold says it will continue to support the restructuring effort and is targeting $160 million in annual cost synergies. The firm says there will be no further job cuts among the German workforce beyond those already agreed with labour unions under the current programme.

Eckard Heidloff, CEO, Wincor Nixdorf, says: “We are convinced that our employees will benefit from being part of an even stronger, more global organization that is well positioned for the age of digitalisation.”

Upon completion, Heidloff will be president of the combined company, with Diebold's Andy Mattes acting as CEO.

Diebold Nixdorf will compete head on with ATM rival NCR, which earlier this month received a $820 million injection from private equity giant Blackstone as it too looks to diversify and embark on a transformation into a software and services firm.