NCR talks with Blackstone hit wall; reports differ on whether deal still alive
NCR (NYSE:NCR) suitor Blackstone Group (NYSE:BX) has cut off current deal talks, according to reports. Reports differ, however, on whether the talks are dead.
As reported, the New York Post today cited a source close to the situation who said Blackstone had walked away, and described the process as "over." Reuters, however, cited people familiar with the situation who described the talks as "stalled," and said there was a possibility a deal could still get done.
The Reuters report indicated that Blackstone had recently discussed partnering with Bain on the deal, although the parties could not come to an agreement on price. The report also indicated that Blackstone had concerns about the amount of equity required for the deal.
As reported, rival buyout firm Thoma Bravo abandoned plans to acquire NCR in July, after offering about USD 31 per share, below the seller ATM-maker's USD 35 a share asking price.
This news service earlier this month, however, reported that the sale process for the Duluth, Georgia-based ATM and point-of-sale device manufacturer had not concluded, but rather had narrowed, and that it continued to have talks with suitors including Blackstone.
For several months, NCR has been exploring strategic alternatives, including a sale and other options. Financial sponsors struggled this summer to keep up with NCR’s auction schedule for what would have been the largest buyout of the year with an enterprise value of more than USD 9bn.
NCR has been under pressure from Marcato Capital Management to improve results. The activist secured a board seat last year and NCR has said it is working to cut costs and improve free cash flow.
New York Post, Newswire Round-up