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Converging product lines: NCR meets Tidel

Nearly six months after their union, NCR and Tidel are laying plans for the future.

June 7, 2006

Mergers and acquisitions are complicated, and NCR Corp.'s acquisition of Tidel Engineering late last year has been no exception. But Brad Lozier, NCR's vice president of ATM product management, told Tidel EasyPoint ATM distributors last week in Dallas that NCR expects to complement what Tidel brings to the table - not control it.

As NCR's EasyPoint ATM line and Tidel's 3000 series morph, NCR will keep its ear to the ground, being mindful of market demands and distributor concerns.

"Tidel's range of products was our interest in the company," he said. "We don't want to lose in any market segment, and we weren't winning in the ISO segment. That's a fact, and Tidel's engineering expertise and knowledge will help us."

Past failures - including NCR's attempted foray into the entry-level retail market with TBS First and the Credit Card Center debacle to which both NCR and Tidel fell victim - has given the two companies perspective, Lozier said. (Read also, With Tidel in its quiver, will NCR have a new shot at retail?)

"I've not met the individual who says the Tidel product needs to be improved," Lozier said. "The problem (with Tidel) was not having financial stability."

He said NCR is committed to the autonomy it promised Tidel when it acquired its ATM business in December 2005. That includes maintaining Tidel's operating structure and letting Mike Hudson, the general manager of NCR EasyPoint ATM LLC, run the business.

Ensuring separation in theory and practice requires commitment, Lozier and Hudson agree. And NCR is learning how to do deal with that commitment on a day-to-day basis.

Lozier told distributors that NCR expects to be more open about "what it plans to do with Tidel," adding that some integration of products and services will likely benefit both operations.

As the new era of the EasyPoint line dawns, the company will further distance itself from the Tidel name. By 2007, the subsidiary's brand will segue from Tidel EasyPoint to EasyPoint ATM, a solution of NCR.

NCR meets Tidel

Hudson reviewed how and when Tidel's 3000 series will change over the next several months.

Now NCR and the EasyPoint ATM subsidiary are outlining plans for growth.

Lozier said certain "synergies" have already been identified. And Hudson said others are being considered, with market differences in mind.

"Banking and retail are two separate and distinct markets," Hudson said. "NCR is built for banking. Tidel is built for the off-premise market."

Synergies include:

• NCR's overseas sales force can enhance EasyPoint's presence in target markets, such as South Africa, Mexico and certain parts of Europe, and provide opportunities for growth.
• NCR parts like the Hawk dispenser can be included in the EasyPoint line for enhanced performance without adversely affecting the line's low-cost.
• Module-sharing was identified as a possibility. EasyPoint-manufactured parts could be integrated into NCR products, and NCR could work with its original equipment manufacturers to give parts to EasyPoint ATM LLC.

Looking toward the future, NCR is weighing other options, like providing remote and network management through NCR's Gasper Corp. to EasyPoint ATMs.

"It's a necessity for big banks, but not so much in the retail sector," to have micromanagement capabilities, Lozier said. "But I think there are ways to leverage that expertise from NCR with Tidel (EasyPoint ATM) products. That ATM management side could help Tidel."