Visa Acceptance Solutions 2024 Global Digital Shopping Index Mexico Edition May 2024 Banner

Brink’s Denies Report of Merger Talks With NCR

Brink’s has denied a media report that it is in talks with NCR to merge with that company’s automatic teller machine (ATM) business.

“The Brink’s Company is not in discussions about a possible strategic transaction with NCR Corporation,” the cash and valuables management company said in a Wednesday (Oct. 11) press release.

Reached for comment by PYMNTS, an NCR spokesperson said in an email: “NCR does not comment on rumor or speculation.”

Reuters reported Wednesday that NCR and Brink’s are in advanced talks regarding a merger that would create a combined company worth close to $12 billion, including debt. The report cited unnamed sources.

The deal, structured as a reverse Morris trust, would allow NCR to merge its ATM business, valued at $5.5 billion, with Brink’s, according to the report. This would also provide NCR shareholders with a large chunk of the combined company tax-free. The valuation of the deal is based on seven times the projected earnings before interest, taxes, depreciation and amortization (EBITDA) of NCR’s ATM business in 2024.

Brink’s, a company valued at about $6.2 billion, specializes in moving cash for its clients and providing ATM services, the report said. It approached NCR with the merger proposal, and negotiations are expected to conclude soon. However, an agreement is not certain at this point.

The report of a potential merger between NCR and Brink’s has had an impact on the stock market, per the report. NCR shares rose by 9% following the news, while Brink’s shares dropped by 10%. This reflects the transfer of value in the potential transaction from Brink’s as the acquirer of the ATM business to NCR as the seller.

NCR had previously announced its plan to separate its digital commerce business from its ATM division in a tax-free manner, according to the report. The commerce business, which NCR will retain, provides payments software to the retail, hospitality and digital banking industries. In 2022, NCR generated revenue of $7.8 billion, up from $7.2 billion the previous year.

The company said on Sept. 25 that the separation is expected to take place Monday (Oct. 16). It reiterated that in a Wednesday press release announcing that NCR CEO Michael D. Hayford will retire upon the successful separation of the company.

If the deal reported by Reuters is agreed upon, the newly created company will be led by Brink’s CEO Mark Eubanks and his management team, the report said. Brink’s primarily generates revenue by helping companies transport cash and operating ATMs. In 2022, the company reported revenue of $4.5 billion, up from $4.2 billion in 2021.