Blackstone Group LP and Carlyle Group LP are making a joint bid for NCR Corp. in a leveraged buyout that would be the year’s biggest at more than US$10 billion, including debt, Reuters reported, citing people familiar with the matter.
Blackstone and Carlyle, the world’s two largest private equity firms, have joined forces to outbid other buyout firms and acquire Duluth, Georgia-based NCR, which manufactures cash registers and ATMs.
The auction for NCR is several weeks away from completion, the sources said.
Other buyout firms vying for NCR include Apollo Global Management LLC and Thoma Bravo LLC.
There is no certainty that the Blackstone and Carlyle consortium will prevail, or even that NCR will agree to a sale with any party, the sources said.
NCR has been exploring options in recent months in light of shareholder pressure. Marcato Capital Management has been calling on NCR since last year to explore strategic alternatives, and now holds a seat on its board of directors.
In the first quarter of the year, NCR’s revenue declined 3 percent to US$1.48 billion compared to a year ago. Free cash flow was US$24 million in the first quarter, up from a year ago.
The company, which was founded more than a century ago, has been trying to expand into the software space.
It recently launched a cloud-based software system for ATM machines called Kalpana that is meant to replace outdated PC software on ATMs and help ATM owners cut costs. It also makes self-checkout machines.
Retailers, which are some of NCR’s biggest customers, have been cutting back on spending, which hurt NCR’s revenue in the first quarter, the report said.
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