Altron is set sell off its ATM Hardware and Support Business to US software, consulting and technology company NCR Corporation.
The JSE-listed Altron today announced its intention to sell the ATM Hardware and Support Business portion of its Altron Managed Solutions division to NCR.
The NCR Retail Hardware and Support business remains under Altron Managed Solutions, says the company.
NCR is a US-headquartered company that provides various software and services worldwide. It has presence in 120 countries and operates in the banking, retail, hospitality, telecoms and technology sectors.
Altron and NCR have since penned a sale of business agreement in a deal, whose final amount is yet to be determined, but has been capped at around R183 million ($10 million).
The deal’s completion is subject to regulatory approvals.
“NCR and Altron have a long relationship, dating back more than 40 years. In this dynamic and highly demanding market, the future for our banking business under a global leader such as NCR brings direct access to the best global resources and talent, as well as an enhanced range of offerings, services, and solution platforms for our customers,” comments Warren Mande, Altron Managed Solutions managing director.
“We are pleased to have NCR’s direct presence in South Africa, driving this business to the next level for the benefit of its customers and staff.”
Commenting on the deal, NCR says: “There is room for global growth as the market for banking solutions constantly evolves. As NCR, we are on the cutting-edge of these developments and our global experience and capabilities will augment this acquisition.
“We see a bright future across Africa and look forward to innovating with customers in South Africa. The acquisition will add to our presence in South Africa, increasing the number of offerings available to our customers.”
For Altron Group chief executive Werner Kapp, the sale aligns with Altron’s 2.0 strategy of maintaining its market leadership in low capital intensity businesses.
“We look forward to our continuing partnership with NCR. We are also proud that NCR and Altron share similar values and our 500 employees’ jobs are protected, and they can look forward to a future of personal growth,” he says.
Altron 2.0 strategy seeks to triple operating income for the company, among other metrics, by disposing capital-heavy and loss-making businesses and acquiring assets in high-growth segments of the market.
Other metrics targeted by the Altron 2.0 strategy are high annuity revenue and a net debt to EBITDA ratio of less than one.
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