Diebold, Incorporated (NYSE: DBD) announced today that it has reached a definitive agreement to sell its campus card systems business to The CBORD Group, Inc., located in Ithaca, N.Y., for approximately $38 million.
Diebold's campus card systems enable access control, electronic payments and other services on and off campus. In addition, Diebold campus card business supplies housing management software to higher education institutions and resorts. This software enables campuses to assign people, assess fees and track history, among others. This business generated approximately $24 million in revenue for Diebold in 2004.
"The sale of the campus card operation will allow our security business to dedicate its focus on global expansion and higher margin services in the financial, government, retail and commercial markets," said Walden W. O'Dell, Diebold chairman and chief executive officer. "During the past few years, we've transformed the campus card business from an operation with performance issues into a very solid business. These efforts created significant value for our shareholders."
O'Dell continued, "CBORD is an exceptionally fine company that we believe is the best owner for this business. We believe the Diebold Card Systems/CBORD combination creates an industry leader that will benefit the stakeholders and customers of both companies. Going forward, Diebold and CBORD plan to work together to bring state-of-the-art security and card solutions to both Diebold and CBORD customers."
Diebold's campus card systems business employs approximately 140 people who will be offered employment by the new owner. CBORD has approximately 280 employees.
As a result of the campus card systems transaction, Diebold now expects a one-time gain of approximately $.18 per share for the third quarter 2005. The recently provided earnings per share guidance for the full-year 2005 remains $2.60 to $2.70. This range excludes the one-time gain on the sale of the campus card business, previously disclosed restructuring charges of $.15 to $.30, and previously disclosed manufacturing start-up costs and related issues of approximately $.04 per share.