NCR, a bank, retail, and restaurant technology provider, has split into two distinct publicly traded businesses, one focused exclusively on ATMs, the other on online commerce.
According to a press release, the NCR board of directors unanimously approved the plan. The plan will be "structured in a tax-free manner" and is planned to be completed by the end of next year.
"It has become evident that NCR has the opportunity to open up value for our shareholders by separating our digital commerce business from our ATM business." According to Frank R. Martire, executive chairman of the NCR Board of Directors, "We have made significant advances over the past four years in establishing a leading software-as-a-service business while continuing to strengthen and expand the ATM business."
"We should be able to accelerate the pace of change by enabling each to execute its own growth strategies and better capture the value-creation opportunities ahead," Martire said.
As the firm considers a strategic review, NCR shows digital banking revenue increasing by 14% YoY.
The digital commerce business created will be a business that is positioned to benefit from NCR's software-driven approach. The business will also expand and operate globally in retail, hospitality, and digital banking, as well as enhance solutions to enhance innovation and efficiency.
The ATM business will be a cash-generating business positioned to provide ATM-as-a-Service to a wide-ranging client base of banks and retailers. It will also drive new growth by utilizing new ATM transaction types, including digital currency solutions.
"This is the right next step in NCR's transformation. The separation would create two strong businesses at scale, each with distinct business goals and capital structures and allocations, as well as greater innovation flexibility," said Michael D. Hayford, CEO of NCR.