By Svea Herbst-Bayliss
NEW YORK (Reuters) – NCR Corp is in advanced discussions to merge its automatic teller (ATM) business with cash management firm Brink’s Co, creating a combined company worth close to $12 billion, including debt, people familiar with the matter said.
The deal, structured as a reverse morris trust, would allow NCR to merge the ATM business at a $5.5 billion valuation, or the equivalent of seven times 2024 earnings EBITDA (earnings before interest, taxes, depreciation and amortization), with Brink’s and give a large chunk of the combined company to NCR shareholders tax free, the sources said.
Brink’s, which is valued at about $6.2 billion including debt, moves cash around the world for its clients and provides ATM services among other things. It approached financial technology and software company NCR in recent months with the deal proposal, and negotiations could conclude as early as next week, the sources said.
The sources cautioned that an agreement is not certain and asked not to be identified because the matter is confidential.
Representatives for NCR and Brinks were not immediately available for comment.
(Reporting by Svea Herbst-Bayliss; Editing by Mark Porter)
