NCR Corp is reportedly in advanced talks to merge its automatic teller machine (ATM) business with cash management firm Brink’s Co, potentially creating a combined entity valued at nearly $12 billion, debt included, according to insiders familiar with the matter.
The proposed merger, structured as a reverse Morris trust, would allow NCR to consolidate its ATM business at a valuation of $5.5 billion, equivalent to seven times the 2024 earnings before interest, taxes, depreciation, and amortization (EBITDA). This arrangement would provide substantial benefits to NCR shareholders in the form of tax-free shares in the newly formed company, which would include Brink’s.
Brink’s, valued at approximately $6.2 billion, including its debt, specializes in global cash transportation services for clients and offers ATM services among other financial solutions. The company initiated discussions with NCR, a financial technology and software company, in recent months, proposing the merger. Negotiations are progressing, and a final agreement could potentially be reached as early as next week. However, it is important to note that a definite agreement has not been confirmed, and the insiders, who are privy to these discussions, have chosen to remain anonymous due to the confidential nature of the matter.
As of now, representatives from NCR and Brink’s have not provided official comments regarding these merger talks. Stay tuned for further updates on this developing story.