NORTH CANTON, Ohio - Diebold Inc. is selling its campus card systems business to Ithaca, N.Y.-based The CBORD Group Inc for approximately $38 million, according to a news release.
Diebold's campus card systems enable access control, electronic payments and other services on and off campus. In addition, Diebold campus card business, which generated about $24 million in revenue last year, supplies housing management software to higher education institutions and resorts.
The approximately 140 people now employed at the campus card business will be offered employment by CBORD. CBORD has approximately 280 employees.
"The sale of the campus card operation will allow our security business to dedicate its focus on global expansion and higher margin services in the financial, government, retail and commercial markets," said Walden W. O'Dell, Diebold chairman and chief executive officer. "During the past few years, we've transformed the campus card business from an operation with performance issues into a very solid business. … CBORD is an exceptionally fine company that we believe is the best owner for this business."
As a result of the campus card systems transaction, Diebold now expects a one-time gain of approximately $.18 per share for the third quarter 2005. Earnings per share for full-year 2005 remain between $2.60 and $2.70. (Read also: Diebold cuts jobs as ATM financial outlook drops and Diebold target price reduced)
