LG to sell ailing ATM business to South Korea's Atec
LG CNS has agreed to sell its ATM business unit to Atec, a Korea-based company mainly engaged in the IT business. The agreement was signed on Sept. 6, according to investment banking industry sources cited in a Business Korea report.
The division has assets of 64 billion won ($56.48 million) and annual sales of 90 billion won ($79.42 million). The selling price was not reported, but was said to be lower than expected, due to Atec's agreement to guarantee the continued employment of the division's current workforce.
In addition to existing ATM unit employees, the sale includes domestic banking ATM licenses for supply and maintenance; land and buildings of the manufacturing plant, inventory and intellectual property rights such as patents.
The LG CNS labor union has pledged to fight the sale, which the union believes is a signal of restructuring an layoffs to come.
The ATM business unit has posted losses for the past three years. Despite a slight increase in sales during 2016, losses for the year came to 12.1 billion won ($10.68 million).
Atec aims to grow the business through the addition of smart financial technologies and hardware export.
The deal is expected to close Dec. 6.