News
Diebold agrees to $26 million purchase price for Global Election Systems
December 11, 2001
NORTH CANTON, Ohio -- Diebold Inc. has agreed to buy Global Election Systems Inc. for $26 million in cash and stock, according to an Associated Press report.
Diebold expects the deal to speed its entry into the U.S. electronic voting market. Diebold in late 1999 purchased Procomp Amazonia Industria Electronica, a Brazilian manufacturer of ATMs and other retail and banking automation equipment, including voting kiosks. In January of 2000, Procomp earned a contract to provide 186,800 voting terminals and accessories, software development, installation, training, logistics and service. The order, valued at U.S. $105.5 million, was the biggest in Diebold's history.
The Global Election deal values each Global share at $1.135 per share, a 51 percent premium over Global's closing price on Sept. 7 of 75 cents a share.
Diebold had previously agreed to provide Global Election Systems with $5 million in financing and to fulfill a contract to make more than 500 touch screen voting terminals.
The deal, which requires shareholder and regulatory approval, is expected to close before the end of the year.
Diebold shares dropped 66 cents on Sept. 10 to close at $35.01 on the New York Stock Exchange. Global's U.S. shares rose 29 cents, or nearly 39 percent, to close at $1.04 on the American Stock Exchange.
Diebold had $1.7 billion in revenue in 2000.
Global Election, based in McKinney, Texas, was formed in early 1991. In 1997, it acquired I-Mark Systems, which had developed a touch screen voting system. The company has voting systems in place in 850 governmental jurisdictions in North America.
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Diebold Nixdorf
As a global technology leader and innovative services provider, Diebold Nixdorf delivers the solutions that enable financial institutions to improve efficiencies, protect assets and better serve consumers.
