NCR Voyix sells digital banking business for $2.45bn

October 2024 | DEALFRONT | PRIVATE EQUITY & VENTURE CAPITAL

Financier Worldwide Magazine

October 2024 Issue

Amid financial turbulence and a need to trim its debt, payments processor NCR Voyix is to sell its cloud-based digital banking arm to private equity firm Veritas Capital for $2.45bn in cash. The terms of the transaction include a future additional contingent consideration of up to $100m.

Currently the largest independent platform of its kind in the US, NCR Voyix’s digital banking platform is the industry’s most comprehensive, digital-first product suite – a platform that seeks to transform consumer and business digital banking with a seamless customer experience across channels in a simple, secure and top-rated user experience.

These solutions allow NCR Voyix to transform retail stores, restaurant systems and digital banking experiences with comprehensive, platform-led software as a service and services capabilities. Headquartered in Atlanta, Georgia, the company has approximately 15,000 employees in 35 countries across the globe.

“NCR Voyix’s digital-first banking platform is a pioneer in mobile and online banking with a superior value proposition and significant runway for growth,” said Ramzi Musallam, chief executive and managing partner at Veritas. “We believe the platform represents a compelling opportunity to invest in a set of mission-critical solutions that will empower both community and enterprise financial institutions and provide new and innovative banking tools to millions of users.”

The company’s platform currently serves more than 1300 top-tier financial institutions and over 20 million active users. As a result of the transaction, the company is positioned to build on its strong market presence and leverage its modern platform to win new customers and develop new products to expand its value proposition as a standalone company.

“We believe that Veritas, as a leading technology investor, is the ideal owner of our digital banking business, as they will continue to invest in market-leading products and solutions to meet the needs of our valued financial institution customers,” said David Wilkinson, chief executive of NCR Voyix. “This transaction allows us to drive value for our shareholders by strengthening our financial position and focusing on our core restaurant and retail customers.”

This transaction is part of NCR Voyix’s ongoing efforts to streamline its operations to focus specifically on its core software and services offerings for restaurants and retailers around the world.

The company expects to use the proceeds of the transaction to accelerate the achievement of certain financial objectives, including de-levering the balance sheet, which will enable greater strategic investment in its core businesses.

The transaction, which is subject to customary closing conditions including regulatory approvals, has been approved by NCR Voyix’s board of directors and is expected to close by the end of 2024.

Serving as financial adviser to NCR Voyix is Goldman Sachs & Co. LLC, with King & Spalding serving as legal counsel. Evercore is acting as financial adviser to Veritas, with Gibson, Dunn & Crutcher LLP as legal counsel.

“Veritas brings a proven track record of successfully executing similar business carveouts and subsequently driving growth,” concluded Brendan Tansill, executive vice president and president of digital banking at NCR Voyix. “We look forward to working alongside their experienced team as we continue to pursue commerce and banking innovations that help our customers and their users succeed.”

Fraser Tennant