NCR Voyix has made a deal to sell its digital banking business to a New York-based investment firm for about $2.45 billion in cash, officials said Tuesday.
The agreement, which is to be carried out by year’s end, calls for Veritas Capital to take control of NCR Voyix’s digital banking business, which the companies describe as the nation’s largest independent platform of its kind, serving more than 1,300 financial institutions and 20 million users.
Veritas, which has more than $40 billion of assets under management, has agreed to pay “additional contingent consideration of up to $100 million,” officials said.
News about the announcement briefly juiced NCR Voyix stock.
Shares of the company, which closed at $12.50 on Monday afternoon, rose $1.10 in trading after the opening bell Tuesday morning before dropping back toward earth. By early afternoon, NCR Voyix was trading slightly down on the day.
In a statement, NCR Voyix said it is divesting such an important part of its business in order to “streamline its operations.”
NCR Voyix divides it business into retail, restaurant and banking divisions, with its much of its retail and restaurant offerings devoted to point of sale technology, loyalty programs and online purchasing.
The company plans to focus efforts and investments on its core businesses, said David Wilkinson, chief executive officer. “This transaction allows us to drive value for our shareholders by strengthening our financial position and focusing on our core restaurant and retail customers.
NCR Voyix expects to use the purchase price to cut the debt on its balance sheet, officials said.
NCR Voyix currently has about 2,200 employees in metro Atlanta, making it one of the largest financial technology companies in the region. Earlier this year, the company laid off an undisclosed number of workers.
The company’s digital banking business has more than 1,600 employees, a spokeswoman said.
In its most recent fiscal quarter, the company reported revenue of $876 million and a net loss of $74 million. In the same quarter a year ago, NCR Voyix had revenues of $928 million and a $51 million loss.
NCR Voyix was originally part of NCR, a company founded in Dayton, Ohio, in 1884. The company, once known as National Cash Register, has been through many iterations and was owned at one time by AT&T.
NCR moved to metro Atlanta in 2009.
Last fall, NCR split into two public companies, NCR Voyix and NCR Atleos.
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