ATM servicer and software provider Diebold Nixdorf has hired financial advisors as it considers a sale. According to CNBC, sources revealed that "Diebold hired Credit Suisse and Evercore last week to help identify potential buyers," though it is too early to determine a price for the company.
The company's shares have been in a freefall after it forecasted lower-than-expected EBITDA earlier this month, and revealed plans to use cash on hand and its revolving credit line to buy $160 million of shares in Wincor Nixdorf, the German company it acquired in 2016.
Since not all of Wincor's shareholders tendered the purchase offer two years ago, Diebold held only 77 percent of the outstanding shares as of the end of July. However, earlier this month, 13 percent of the remaining holders asked to be paid, totaling around $255 million. Diebold paid $160 million and will pay the remaining $95 million later this week — and will then own more than 90 percent of the outstanding shares.
D.A. Davidson's Matt Summerville said that, at the end of the second quarter, Diebold had access to $380 million in funds under its revolving credit facility.
"The company is in constructive and productive discussions with its lenders regarding its future financial flexibility, and expects to reach a resolution in the near-term," Diebold said in the statement. "The company will disclose additional details in due course."
Diebold now has a market capitalization of less than $400 million after its shares fell around 75 percent, from $21.50 to less than $5 over the past year. Diebold's annual revenue in 2017 was $4.6 billion, and now has an enterprise value of just over $2 billion.
While a Diebold spokesman refused to comment about the sale reports, he did say, "As a global leader in our industry, we have the scale and capacity to evolve alongside the markets we serve, and continue to bring our customers innovative services and solutions."