NCR Voyix Completes Sale of Digital Banking Business

Rhea-AI Summary

NCR Voyix (NYSE: VYX) has completed the sale of its Digital Banking business to Veritas Capital for $2.45 billion in cash, with potential for an additional $100 million in contingent consideration. This transaction marks a significant step for NCR Voyix as it narrows its focus on core restaurant and retail businesses to enhance long-term shareholder value.

David Wilkinson, CEO of NCR Voyix, emphasized the strategic importance of this move. Brendan Tansill, CEO of the newly branded Candescent (formerly NCR Voyix's Digital Banking business), expressed optimism about the company's future growth as a standalone entity, highlighting its position as a market leader with a fully integrated digital-first platform.

Positive

• Sale of Digital Banking business for $2.45 billion in cash
• Potential for additional $100 million in contingent consideration
• Strategic focus on core restaurant and retail businesses
• Aim to enhance long-term shareholder value

Negative

• Divestiture of a significant business segment

Insights

Financial Analyst

The sale of NCR Voyix's Digital Banking business for $2.45 billion in cash, with potential additional $100 million in contingent consideration, is a significant transaction that will reshape the company's focus and financial structure. This deal represents approximately 123.8% of NCR Voyix's current market cap of $1.98 billion, indicating a substantial influx of capital.

Key implications for investors include:

• Improved balance sheet: The cash infusion will likely be used to reduce debt and strengthen the company's financial position.
• Strategic refocus: Narrowing focus on core restaurant and retail businesses could lead to improved operational efficiency and potentially higher margins.
• Short-term stock impact: Expect potential volatility as the market reassesses the company's value post-divestiture.
• Long-term growth prospects: Success will depend on management's ability to effectively deploy proceeds and execute in their core markets.

Investors should closely monitor how NCR Voyix allocates the proceeds and its performance in the restaurant and retail sectors going forward.

Market Research Analyst

This divestiture marks a pivotal moment for NCR Voyix, signaling a strategic shift that could redefine its market position. The decision to exit the digital banking space and focus on restaurant and retail technologies aligns with broader industry trends of specialization and consolidation.

Key market implications include:

• Competitive landscape: NCR Voyix's exit may create opportunities for remaining players in the digital banking sector to consolidate market share.
• Industry consolidation: This move could trigger further M&A activity in both the fintech and retail tech sectors as companies seek to optimize their portfolios.
• Innovation focus: With a narrower scope, NCR Voyix may accelerate innovation in its core areas, potentially leading to new product launches and market expansion.

Investors should watch for shifts in NCR Voyix's R&D spending, new partnerships and market share developments in its focused segments to gauge the long-term impact of this strategic realignment.

ATLANTA--(BUSINESS WIRE)-- NCR Voyix Corporation (NYSE: VYX) (“NCR Voyix” or the “Company”) announced today the completion of the previously announced sale of its Digital Banking business to Veritas Capital for a purchase price of $2.45 billion in cash plus future additional contingent consideration of up to $100 million.

“The completion of this transaction represents a significant step forward for the Company as we narrow our focus on our core restaurant and retail businesses to drive enhanced long-term value for shareholders,” said David Wilkinson, CEO of NCR Voyix.

“As a part of NCR Voyix, we were able to significantly scale our fully integrated digital-first platform and industry-leading portfolio over the last several years and emerge as the market leader in our space,” said Brendan Tansill, CEO of Candescent. “We look forward to continuing our growth journey as we expand our value proposition as a standalone company under our new brand, Candescent.”

About NCR Voyix

NCR Voyix Corporation (NYSE: VYX) is a leading global provider of digital commerce solutions for the retail and restaurant industries. NCR Voyix empowers retailers and restaurants to transform their customers experiences through a comprehensive cloud-based platform and extensive services capabilities. Headquartered in Atlanta, Georgia, it serves customers in more than 30 countries.

About Candescent

Candescent is the largest independent digital banking platform in the United States. With a comprehensive, digital-first product suite, Candescent seeks to elevate the success of our financial institution customers by delivering a seamless experience across the digital and physical banking channels. Candescent currently serves more than 1,300 financial institutions representing more than 29 million registered users. For more information, visit www.candescent.com.

Forward Looking Statements

This press release includes statements which may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the accuracy of which are necessarily subject to risks, uncertainties, and assumptions as to future events that may not prove to be accurate. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “target,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” or “continue” or the negative of these terms or other comparable terminology. These statements include, but are not limited to, express or implied forward-looking statements relating to our expectations regarding the Company’s business following the sale of its digital banking business. These statements are neither promises nor guarantees, but are subject to a variety of risks and uncertainties, many of which are beyond our control, which could cause actual results, levels of activity, performance or achievements to differ materially from those contemplated in these forward-looking statements. Investors and others are cautioned not to place undue reliance on forward-looking statements. Factors that could cause actual results to differ materially from those expressed or implied include our ability to achieve some or all of the expected benefits of the transaction and the other risks and uncertainties further described in the “Risk Factors” section of the Company’s most recent Annual Report on Form 10-K, and in the Company’s subsequent Quarterly Reports on Form 10-Q, as well as in the Company’s other reports filed with or furnished to the U.S. Securities and Exchange Commission, available at www.sec.gov. Forward-looking statements should be considered in light of these risks and uncertainties. These forward-looking statements speak only as of the date of this press release or as of the date to which they refer, and NCR Voyix assumes no obligation to update any forward-looking statements as a result of new information or future events or developments, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240930555847/en/

News Media Contact

media.relations@ncrvoyix.com



Investor Contact

Alan Katz

alan.katz@ncrvoyix.com

Source: NCR Voyix Corporation

FAQ

What is the value of NCR Voyix's (VYX) Digital Banking business sale?

NCR Voyix (VYX) sold its Digital Banking business for $2.45 billion in cash, with potential for an additional $100 million in contingent consideration.

Who acquired NCR Voyix's (VYX) Digital Banking business?

Veritas Capital acquired NCR Voyix's (VYX) Digital Banking business.

What is NCR Voyix (VYX) focusing on after selling its Digital Banking business?

After the sale, NCR Voyix (VYX) is narrowing its focus on its core restaurant and retail businesses to drive enhanced long-term value for shareholders.

What is the new brand name for NCR Voyix's (VYX) former Digital Banking business?

The former Digital Banking business of NCR Voyix (VYX) will operate as a standalone company under the new brand name Candescent.