Is NCR Still A Sheep In Wolf's Clothing?
Stephen Simpson, CFA
Stephen Simpson, CFA
Tue, Mar. 1, 5:44 PM
- NCR has acquired CimpleBox, a provider of cloud-based back-office apps for restaurant owners and retailers, for an undisclosed sum.
- The purchase continues a multi-year effort by NCR to grow its software exposure. In 2012, the company struck a $650M deal to buy point-of-sale software provider Retalix.
- NCR notes CimpleBox's software (aimed at SMBs) is already integrated with the company's NCR Silver mobile point-of-sale product line, and proclaims it "helps businesses reduce the amount of time spent on manual processes, consolidates data and scheduling across multiple sites and gives management visibility into the business and day-to-day operations."
Thu, Jan. 7, 9:45 AM
- P-E firm Atlas Holdings is buying NCR's (NCR -2%) Interactive Printer Solutions (IPS) business, which provides printer supplies for hardware (inc. ATMs and point-of-sale systems) used by retail, financial, hospitality, e-commerce, warehousing, distribution, and manufacturing clients. Terms are undisclosed.
- The deal is expected to close in Q2, and includes IPS' manufacturing facilities and distribution centers. It arrives two months after NCR announced an $820M investment from Blackstone.
- NCR is following equity markets lower in early trading.
Nov. 23, 2015, 3:05 AM
- Looking to form the world's largest ATM maker, Diebold (NYSE:DBD) has launched a $1.8B bid for German rival Wincor Nixdorf (OTCPK:WNXDF), which includes €38.98 in cash and 0.434 of a common Diebold share.
- A deal would see the two companies land about 35% of the ATM market, leaving NCR Corp. (NYSE:NCR), the global number two, with an estimated share of 25%.
- Wincor expects the transaction to yield at least $160M in annual costs savings.
- Previously: Diebold makes offer for Wincor Nixdorf (Oct. 18 2015)
Nov. 11, 2015, 6:13 PM
- Sources tell the WSJ Blackstone plans to invest over $800M for a 15%+ stake in NCR. The P-E firm will receive dividend-paying preferred shares that are convertible to common stock (currently non-dividend paying) at $30, and two board seats.
- As previously indicated, NCR plans to launch a $1B buyback with the help of the new funds. The company had $303M in cash at the end of Q3, and $3.2B in debt. 2015 free cash flow guidance is at $350M-$400M.
- NCR +3.7% after hours to $27.76.
- Earlier: Blackstone reportedly nears deal for NCR stake
Nov. 11, 2015, 4:26 PM
- The WSJ reports P-E firm Blackstone is close to a deal to buy a minority stake in NCR, and that NCR plans to launch a $1B buyback on Thursday.
- The NY Post reported in September Blackstone decided not to make a bid to acquire NCR after holding buyout talks. Various other P-E firms have also reportedly held talks with the ATM and point-of-sale hardware/software firm.
- NCR has risen to $27.95 after hours.
Oct. 19, 2015, 3:59 PM
- Sources tell dealReporter NCR's (NCR +1.7%) strategic review is ongoing, and that the company is still looking to talk with prospective suitors. Shares caught a slight bid in response.
- The NY Post reported last month Blackstone has decided not to bid for NCR, after previously showing interest. Q3 results arrive after the Oct. 27 close.
Sep. 22, 2015, 3:16 PM
- Blackstone Group has decided not to make a bid for NCR Corporation (NCR -5.9%), sources tell The New York Post.
- Shares of NCR ran higher earlier this month on optimism Blackstone would engage in negotiations.
- The ATM maker is under pressure from activist investors to boost share price and explore sale options.
Sep. 11, 2015, 9:51 AM
- A day after NCR rose 7.1% following the cancelling of its investor day and a dealReporter column stating buyout talks could resume, shares are adding to their gains with the help of an NY Post report stating a group featuring Blackstone plans to make a bid.
- One source goes as far as to say NCR "has already signed a deal with a mystery buyer who has not yet lined up financing." The Post has frequently reported on NCR buyout talks since June.
Sep. 10, 2015, 10:45 AM
- dealReporter states talks between NCR and P-E firms might restart.
- Is a lower stock price reigniting deal talks? NCR fell sharply in late July after the NY Post reported P-E firm Thoma Bravo had ended its efforts to acquire the company, and that other prospective suitors had also lost interest. Shares fell further in mid-August, and remain down 29% from a 52-week high of $36.50.
Jul. 30, 2015, 9:10 AM
- The NY Post reports Thoma Bravo has ended its efforts to acquire NCR, and that the company is now "expected to pull the plug on the auction altogether."
- The P-E firm reportedly wasn't "offering much more than the current trading price." Carlyle and Blackstone are said to have previously lost interest.
- NCR has fallen to $28.40 premarket. Shares rose yesterday following the company's mixed Q2 results and full-year free cash flow guidance hike.
Jul. 29, 2015, 10:32 AM
- After beating Q2 EPS estimates and slightly missing on revenue, NCR is reiterating full-year guidance for revenue of $6.525B-$6.675B and EPS of $2.60-$2.80 (consensus is at $6.54B and $2.65). However, free cash flow guidance has been hiked by $25M to $350M-$400M.
- Q3 revenue guidance of $1.63B-$1.65B is below a $1.67B consensus. A strong dollar is expected to have a 2% impact on 2015 revenue growth.
- Meanwhile, when asked on the earnings call (transcript) about NCR's strategic review, CEO William Nuti stated the review is ongoing and expected to "conclude in the near future." The remarks come amid a flurry of M&A reports.
- Cloud/SaaS revenue rose 8% Y//Y in Q2 to $135M. However, hardware revenue fell 2% to $622M, software license/maintenance revenue 2% to $168M, professional services 8% to $137M, and other services 6% to $542M. Forex had a 7% impact on total revenue growth. Within verticals, financial services revenue fell 7%, retail was flat, hospitality up 1%, and emerging industries up 2%.
- Q2 results, PR
Jul. 24, 2015, 10:50 AM
- CNBC's David Faber reports KKR has joined the ranks of P-E firms bidding for NCR (NCR -0.3%). Thoma Bravo and Blackstone have been previously mentioned in reports.
- Meanwhile, a source (possibly linked to Thoma Bravo and hoping NCR will lower its selling price) tells the NY Post Thoma Bravo has partnered with the Ontario Teachers' Pension Plan and Singaporean sovereign wealth fund GIC on a bid, and that the odds of a deal are 50/50. The source: "They are still talking to the seller. I think they will spend the weekend going back and forth on price."
- NCR's Q2 report arrives on Tuesday.
- Prior NCR coverage
Jul. 20, 2015, 2:53 PM
- Sources tell dealReporter Thoma Bravo and Blackstone are prepping competing buyout offers for NCR (NCR +1.8%), and that final bids are due soon.
- Shares have turned positive after spending most of the day down moderately. They rose on Friday after Reuters reported Thoma Bravo is talking with P-E investors and banks to put together a bid worth ~$9B (after factoring debt).
- NCR currently has a $5.2B market cap, and had $3.2B in net debt at the end of Q1. Q2 results arrive on July 28.
Jul. 17, 2015, 3:52 PM
- NCR jumps 3% (and up as much as 7% just minutes ago) as Reuters reports Thoma Bravo is assembling a consortium for a $9B bid (including debt) for the ATM maker.
- Thoma Bravo is also talking to banks about debt financing as well as its equity partners, Reuters says. It would have to raise more than $2B in equity for its offer, sources said.
- The deal would be the year's largest leveraged buyout.
- Previously: Report: NCR pushes back buyout offer deadline to July 26 (Jun. 30 2015)
Jun. 30, 2015, 11:54 AM
- The NY Post reports NCR (NCR +0.2%) has "pushed back the binding bidding deadline for the company by more than two weeks, from July 8 to July 26."
- The paper reported last week would-be P-E suitors were "balking" at NCR's $36/share asking price. Shares are currently at $30.16, below where they traded before Reuters reported on June 16 Blackstone and Carlyle were making a joint bid.
Jun. 25, 2015, 9:46 AM
- Would-be NCR suitors Blackstone, Carlyle, Apollo, and Thoma Bravo are "balking" at the $36/share asking price set by the company, the NY Post reports.
- The paper also states suitors want more financial info from the company before making a bid, and that "opaque and aggressive accounting issues have complicated NCR’s valuation."
- NCR soared last week after Reuters reported Blackstone and Carlyle are partnering on a $10B+ bid. Shares currently trade 11% below NCR's reported asking price.