News

Another week, another NCR buyout rumor

The latest word on The Street has 'consolidation' investment firm Thoma Bravo seeking to put together a $9 billion bid for the ATM-maker.

July 17, 2015

Just when we thought two whole weeks might go by without a single NCR sale rumor ...

Reuters this afternoon reported that "buy and build" private equity firm Thoma Bravo LLC has approached some of its largest investors about putting together a $9 billion bid for NCR Corp.

According to Reuters:                                               

Thoma Bravo is also in advanced talks with close to a dozen banks about securing debt financing for a bid for NCR that could come in the next few days, [sources] said this week. The deal would be this year's largest leveraged buyout.

Reuters sources named Ontario Teachers' Pension Plan and GIC Private Ltd., Singapore's sovereign wealth fund, as prospective investors. However, they cautioned that it remains to be seen whether either is interested in the deal and, indeed, whether NCR would even accept a bid, if offered.

According to the Thoma Bravo website, the firm operates by "investing in a 'platform' business in a fragmented industry and then working with management to transform it into a larger and more profitable business through internal growth and a series of strategic, industry consolidating acquisitions."

Previous reports had investment firms Blackstone and Carlyle considering a joint bid for NCR, but balking at the company's $10 billion asking price.

Neither NCR nor its prospective bidders have made any public comment on sale rumors, which have persisted since April.

Today's news provided a boost to NCR shares, which closed the day at $30.26, up 2.6 percent on the day.