US ATM manufacturer Diebdold is in takeover talks with Wincor Nixdorf in a deal that would value the German firm at nearly $2 billion.
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.
For Diedbold, the proposed $59.58 per share offer will provide the US firm with a foothold in the European ATM and eftpos markets - where it has struggled in the past to gain traction.
The companies have gone dark over their plans for a future tie-up while undertaking the necessary due diligence.
In a statement, they say: "There can be no assurance that any binding agreement will be reached at the above mentioned terms, or at all, or that a public tender offer will be launched."
All eyes will now turn to rival ATM outfit NCR, which is also feeling the pressure from industry consolidation. The firm received an approach from venture capital firm Blackstone in the summer, but has yet reach agreement on terms.