FILE PHOTO: Mike Hayford, President and CEO of NCR Corporation, rings the opening bell at the New York Stock Exchange (NYSE) in New York, U.S., November 7, 2018. REUTERS/Brendan McDermid/File Photo
NEW YORK (Reuters) -Cash management firm Brink's Co said on Wednesday that it was not in talks with NCR Corp about a transaction, after Reuters reported that the two companies were in talks to create a new automatic teller (ATM) business.
Sources told Reuters earlier on Wednesday that NCR was in advanced talks to combine its ATM business at a $5.5 billion valuation with Brink's.
The deal, structured as a Reverse Morris Trust, would have allowed NCR to give a large chunk of the combined company to NCR shareholders tax free, the sources said.
Brink's said in a statement that it "is not in discussions about a possible strategic transaction with NCR Corp." A Brink's spokesperson did not immediately respond to a request for comment on whether these discussions had previously occurred. NCR declined to comment.
NCR said in September 2022 that it planned to separate its digital commerce business from its ATM division in a tax-free manner. The commerce business NCR will retain provides payments software to the retail, hospitality and digital banking industries.
In total, NCR generated revenue of $7.8 billion in 2022, up from $7.2 billion in 2021.
The company announced earlier on Wednesday that CEO Michael Hayford would retire upon the separation of the businesses.
Based in Richmond, Virginia, Brink's makes most of its revenue helping companies transport cash and operating ATMs. It posted revenue of $4.5 billion in 2022, up from $4.2 billion in 2021.
(Reporting by Svea Herbst-Bayliss; Editing by Mark Porter, Diane Craft and Cynthia Osterman)
