Diebold Nixdorf Planning To Divest Legacy Diebold Business In The U.K.
NORTH CANTON, Ohio and PADERBORN, Germany, March 16, 2017 /PRNewswire/ -- Diebold Nixdorf, Incorporated (NYSE: DBD), a world leader in enabling connected commerce for millions of consumers across the financial and retail industries, today announced that the U.K. Competition and Markets Authority (CMA) has published its official findings in connection with the business combination of Diebold, Incorporated and Wincor Nixdorf AG in the U.K.
The CMA has concluded that a structural remedy is required. Diebold Nixdorf is now actively pursuing a divestiture of its legacy Diebold business in the U.K. with a potential purchaser. The company believes it can satisfy the CMA's requirements and conclude this transaction as soon as practicable.
Outside the U.K., Diebold Nixdorf continues to implement its multi-year business transformation program, DN2020, which aligns the company around executing common strategies and goals to drive innovation to meet the needs of its customers and deliver shareholder value. Diebold Nixdorf today reconfirmed the company's previously disclosed financial targets for 2020, including net cost improvement of $200 million and non-GAAP earnings per share of approximately $3.501 as the combination benefits clearly outweigh the impact of the planned divestiture of the legacy Diebold business in the U.K.
On Aug. 15, 2016, Diebold completed its acquisition of Wincor Nixdorf, achieving approval from shareholders and regulatory authorities around the world. In the U.K., the Diebold and Wincor Nixdorf brands and operations have remained separate and distinct while awaiting CMA review.
Forward-Looking Statements
Certain statements contained in this communication regarding matters that are not historical facts are forward-looking statements (as defined in the Private Securities Litigation Reform Act of 1995). These include statements regarding management's intentions, plans, beliefs, expectations or forecasts for the future including, without limitation, the business combination with Wincor Nixdorf. Such forward-looking statements are based on the current expectations of Diebold and involve risks and uncertainties; consequently, actual results may differ materially from those expressed or implied in the statements. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance and actual results of operations, financial condition and liquidity, and the development of the industries in which the combined company operates may differ materially from those made in or suggested by the forward-looking statements contained in this document. In addition, risks and uncertainties related to the acquisition include, but are not limited to, the ability to successfully integrate the businesses of Diebold and Wincor Nixdorf, the timing, receipt and terms and conditions of any governmental and regulatory approvals that could reduce anticipated benefits or cause the parties to abandon the business combination, risks associated with the impact of the business combination agreement, the domination and profit and loss transfer agreement and any related litigation may have on the business and operations of the combined company, risks related to disruption of management time from ongoing business operations due to the acquisition, and the risk that the acquisition could have an adverse effect on the ability of the combined company to retain and hire key personnel and maintain relationships with its suppliers, and on its operating results and businesses generally. These risks, as well as other risks are more fully discussed in Diebold's reports filed with the SEC and available at the SEC's website at www.sec.gov. Any forward‑looking statements speak only as at the date of this document. Except as required by applicable law, neither Diebold nor Wincor Nixdorf undertakes any obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events or otherwise.
About Diebold Nixdorf
Diebold Nixdorf, Incorporated (NYSE:DBD) is a world leader in enabling connected commerce for millions of consumers each day across the financial and retail industries. Its software-defined solutions bridge the physical and digital worlds of cash and consumer transactions conveniently, securely and efficiently. As an innovation partner for nearly all of the world's top 100 financial institutions and a majority of the top 25 global retailers, Diebold Nixdorf delivers unparalleled services and technology that are essential to evolve in an 'always on' and changing consumer landscape.
Diebold Nixdorf has a presence in more than 130 countries with approximately 25,000 employees worldwide. The organization maintains corporate offices in North Canton, Ohio, USA and Paderborn, Germany. Shares are traded on the New York and Frankfurt Stock Exchanges under the symbol 'DBD'. Visit www.DieboldNixdorf.com for more information.
1 - Based on 30% non-GAAP effective tax rate. With respect to the company's financial targets for 2020, the inability to predict the amount and timing of future items makes a detailed reconciliation of these projections impracticable.
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