NCR Splitting Into 2 Distinct Companies

Bank, retail and restaurant enterprise technology provider NCR is splitting into two distinct publicly traded companies, with one focused exclusively on ATMs and the other targeting online commerce.

The NCR Board of Directors unanimously approved the plan, which will be “structured in a tax-free manner” and is anticipated to take place by the end of next year, according to a Friday (Sept. 16) press release.

See also: Why Banking Apps Need to Be More Than Just Banking Apps

“It has become clear that NCR has the opportunity to unlock value for our shareholders by separating our digital commerce business and our ATM business. We have made significant strides over the past four years in creating a leading software-as-a-service business while continuing to strengthen and grow the ATM business,” said Frank R. Martire, executive chairman, NCR Board of Directors.

“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 added.

Read more: NCR Shows Digital Banking Revenues up 14% YoY as Firm Mulls Strategic Review

The digital commerce firm created will be a growth business positioned to leverage NCR’s software-led model. The company will further transform and operate global retail, hospitality and digital banking as well as maximize solutions to advance innovations and efficiency.

The ATM company will be a cash-generative business positioned to deliver ATM-as-a-Service to a wide-ranging client base of banks and retailers. It will also drive new growth by leveraging new ATM transaction types, including digital currency solutions.

Related: NCR Buys Intellectual Property to Advance Open Banking

“This announcement is the right next step in NCR’s transformation. The separation would create two strong companies at scale, each with distinctive business goals and capital structures and allocation, as well as increased flexibility to innovate,” said Michael D. Hayford, CEO of NCR.