NCR Voyix agrees to sell digital banking unit to Veritas Capital for $2.45bn
NCR Voyix has entered into a definitive agreement to sell its cloud-based digital banking business to private equity firm Veritas Capital for $2.45 billion.
NCR Voyix to sell digital banking business to Veritas Capital for $2.45bn
The all-cash deal includes a future additional contingent consideration of up to $100 million and is forecast to close by the end of this year, subject to the approval of regulators.
NCR Voyix’s digital banking platform offers a suite of software solutions aimed at supporting the digital transformation of banks, credit unions and other financial institutions.
This includes digital banking, customer engagement, payments, lending, analytics, compliance and API solutions which the company claims are currently being deployed by “1,300 top-tier financial institutions and over 20 million active users”.
“The business is positioned to build on its strong market presence and leverage its modern platform to win new customers and develop new products to expand its value proposition as a standalone company,” NCR Voyix says.
‘Runway for growth’
For NCR Voyix, the sale of the business forms part of its ongoing efforts to streamline its operations and “focus specifically on its core software and services offerings for restaurants and retailers”.
It says the proceeds raised from the transaction will be used to “accelerate the achievement of certain financial objectives, including de-levering the balance sheet, which will enable greater strategic investment in the company’s core businesses”.
David Wilkinson, CEO of NCR Voyix, says that Veritas is “the ideal owner of our digital banking business”, adding that the deal “allows us to drive value for our shareholders by strengthening our financial position and focusing on our core restaurant and retail customers”.
Ramzi Musallam, CEO and managing partner of Veritas, says the deal “represents a compelling opportunity to invest in a set of mission-critical solutions”, adding that the digital banking business of NCR Voyix offers “a superior value proposition and significant runway for growth”.
This is not the first time the names NCR and Veritas have been linked together. Back in July 2022, The Wall Street Journal reported that Veritas was in talks to acquire what was then known as NCR Corporation – prior to the separation of the company into two respective businesses in Q4 last year – though the potential deal never materialised.
