Rival Takeover

Wincor and Diebold to Create ATM Giant

  • Why it matters

    Why it matters

    U.S. cash machine maker Diebold will strengthen its stronghold in Europe and become the world’s largest ATM maker after buying German rival Wincor Nixdorf.

  • Facts

    Facts

    • Wincor Nixdorf is the world’s second-largest maker of cash machines and payment terminals by revenue; Diebold is the world’s third-largest maker.
    • The Paderborn-based firm has suffered from a downsizing of Germany’s banking sector, which is marked by oversupply.
    • Wincor Nixdorf, Diebold and market leader NCR have also faced increasing competition from online payment systems, such as PayPal and Apple Pay.
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    Audio

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Wincor Nixdorf has agreed to Diebold's takeover bid. Source: DPA / Bernd Thissen [M]
Wincor Nixdorf has agreed to Diebold's takeover bid. Source: DPA / Bernd Thissen [M]
Wincor Nixdorf has agreed to Diebold’s takeover bid. Source: DPA / Bernd Thissen [M]

 

Wincor Nixdorf, the world’s second-largest maker of cash dispensers based in Paderborn, threw in the towel on Monday, agreeing to a takeover by U.S. rival Diebold, worth €1.7 billion, or $1.8 billion, in a combination of cash and shares.

Faced with a weak German banking market, where branches have been closing and demand for cash machines has fallen, Wincor Nixdorf in April issued a profit warning and announced 1,100 job cuts.

Faced with widespread competition from national, regional cooperative and state-owned banks and a shift to online banking, Germany’s financial institutions have been downsizing for years. Munich-based Hypovereinsbank, a unit of Italy’s Unicredit Bank, is closing down 240 of 580 branches.

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