NCR announced that its planned spinoff of its ATM business is weeks away.
The technology services company said its board approved the timing of the separation of NCR Atleos, its ATM-focused company, from NCR Voyix, its online commerce company, according to a Friday (Sept. 22) press release.
“The distribution is expected to be made at 5 p.m. local New York City time on Oct. 16, 2023, to the company’s common stockholders of record as of 5 p.m. local New York City time on Oct. 2, 2023, the record date for the distribution,” the release said.
The goal is to unlock value by separating the two businesses, NCR Board of Directors Executive Chairman Frank R. Martire said when the announcement was first made in September 2022.
“By creating two best-in-class independent companies, we should be able to accelerate the pace of transformation by enabling each to execute its own growth strategies and better capture the value-creation opportunities ahead,” Martire said at the time.
CEO Michael D. Hayford said in the Friday release that the separation is a “proud moment in the company’s 139-year history of innovation. Through that same vibrant tradition and culture, Voyix and Atleos stand poised to build on the company’s legacy as value-creators for stockholders and top attractors for talent and growth.”
Last month, NCR reported second-quarter revenue of nearly $2 billion, a 1% year-over-year decline. Hardware sales dipped, while the impact of the strong U.S. dollar compared to the previous year had an unfavorable effect of $18 million on revenue, especially in the retail and self-service banking segments.
The company generated $154 million of free cash flow in the second quarter, which exceeded its goal of generating at least $500 million of free cash flow over the past three quarters, a goal Hayford said would enable the firm “to decrease financial leverage in preparation for the separation transaction.”
PYMNTS noted earlier this year that the number of ATMs in the U.S. fell to 451,500 in 2022 after reaching its highest level of 470,000 in 2019.
Despite their declining numbers, the machines remain in use. Workers who receive tips, for example, like to use ATMs to get that cash into their accounts.
Other ATMs are taking on new jobs, being outfitted with remote videoconferencing capabilities that allow customers to talk with a teller — without the bank having to maintain a physical branch.