(NCR), the Wall Street Journal reported citing people familiar with the matter.
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(NYSE:NCR) confirmed publicly on Thursday that private equity firm Blackstone Group (NYSE:BX) is taking an $820 million stake in the historic firm, after a lengthy and ultimately unsuccessful effort to sell itself.
Blackstone will also receive two NCR board seats as part of its investment. NCR CEO and Chairman Bill Nuti explained that the partnership will help the company reach new heights, and build long-term shareholder value.
“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”.
The investment comes as NCR – and the ATM market in general – comes to terms with a rapidly changing landscape.
The Duluth, Georgia-based firm will use the investment to buy back more than $1 billion of its own shares through a self-tender beginning November 13, although the transaction is not expected to close until early December.
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“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”. Blackstone can convert the preferred shares at any time and can require NCR to repurchase them after 8.5 years.
