NCR Corp. Gets $820M Investment From Private Equity Firm Blackstone

NCR Corporation, an American computer hardware, software and electronics company, received an $820-million investment from private equity firm Blackstone Group. The private equity firm will get a 17% stake in NCR Corp, one the world’s biggest makers of automated teller machines. The money will be used to buy back up to $1 billion of NCR’s common stock. The deal is expected to close by the end of the year.

NCR also reported that the investment will be used by the company to speed up its transformation into a software and services company.

The Duluth, Georgia-based NCR, which was founded in 1884, has been trying to expand into the software sector. It recently launched a cloud-based software system for ATMs called Kalpana which is meant to replace outdated PC software on the machines and help owners cut costs.

After concluding a comprehensive review of strategic alternatives, the NCR board has determined that executing our strategic plan with Blackstone’s assistance is the best way to accelerate NCR’s transformation and build long-term shareholder value, said NCR Chairman and CEO Bill Nuti in the press release. Blackstone is an experienced technology investor with a long-term perspective that can help us continue to drive our higher-margin software-related revenue, deliver world-class service globally, optimize our manufacturing processes and supply chain and rationalize costs. This investment is a strong vote of confidence in our long-term strategy and future growth potential, and it will enable NCR to return significant cash to those shareholders who want to monetize their investment in the near term while preserving our ability to fund growth opportunities and increase shareholder value in the years ahead.

In connection with the investment, NCR will expand its board of directors from 9 to 11 directors and appoint Senior Managing Director Chinh Chu and Managing Director of Blackstone Greg Blank to the NCR board upon the closing of the transaction, which is expected to occur by early December.

Mr. Nuti continued, We are delighted to welcome Chinh and Greg to our board. Blackstone has a well-deserved reputation as a strong corporate partner, and we expect that the board will benefit from Chinh’s and Greg’s strategic and financial expertise. NCR will enjoy the full resources of Blackstone’s unique platform of operational support and is well positioned to leverage Blackstone’s global network as we look to expand our partnership network and evaluate new growth opportunities.

NCR has made tremendous progress removing legacy barriers to growth and executing a corporate transformation focused on extending its product capabilities into new areas of software and services. NCR is well positioned to continue to win market share and deliver exceptional value to its customers, said Chinh Chu, Senior Managing Director of Private Equity at Blackstone.

We are pleased to partner with NCR at such a pivotal time and believe it has the right strategy and vision to meet the needs of a rapidly changing market, said Greg Blank, Managing Director of Private Equity at Blackstone. Chinh and I look forward to working with the NCR board and management team to increase value for all shareholders.

According to company’s press release, the strategic relationship will provide significant resources to enable NCR to:

- Grow recurring revenue through software development and services initiatives and a continued transition to cloud-based offerings - Improve services productivity and customer satisfaction through a continuing shift to innovative, higher-margin, value-added service offerings - Expand margins through lean manufacturing, product lifecycle management and procurement processes - Optimize hardware and supply chain assets - Preserve financial flexibility to drive sustainable growth going forward.

NCR’s shareholders will be able to participate, along with Blackstone, in the company’s significant growth opportunities in the rapidly expanding market for integrated solutions.

About Blackstone:

Blackstone is one of the world’s leading investment firms. It seeks to create positive economic impact and long-term value for its investors, the companies it invests in and the communities in which it works. Blackstone does this by using extraordinary people and flexible capital to help companies solve problems. Its asset management businesses, with over $330 billion in assets under management, include investment vehicles focused on private equity, real estate, public debt and equity, non-investment grade credit, real assets and secondary funds, all on a global basis. For further information, please click here.

About NCR Corporation:

NCR Corporation (NYSE: NCR) is the global leader in consumer transaction technologies, turning everyday interactions with businesses into exceptional experiences. With its software, hardware and portfolio of services, NCR enables more than 485 million transactions daily across the financial, retail, hospitality, travel, telecom and technology industries. NCR solutions run the everyday transactions that make your life easier.

NCR is headquartered in Duluth, Georgia with over 29,000 employees and does business in 180 countries. NCR is a trademark of NCR Corporation in the United States and other countries. NCR encourages investors to visit its website which is updated regularly with financial and other important information about NCR.