NCR Voyix Corporation VYX shares are trading higher on Tuesday following news of a new deal.
The company has entered into an agreement with Veritas Capital, under which a Veritas affiliate will acquire NCR Voyix’s cloud-based digital banking business for $2.45 billion in cash, with potential additional contingent consideration of up to $100 million.
NCR Voyix’s digital banking platform serves over 1,300 top-tier financial institutions and over 20 million active users.
The company said it is well-positioned to leverage its modern platform to acquire new customers and develop innovative products as an independent entity.
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This transaction is part of NCR Voyix’s strategy to streamline its operations and concentrate on its core software and services for restaurants and retailers globally.
“This transaction allows us to drive value for our shareholders by strengthening our financial position and focusing on our core restaurant and retail customers,” said David Wilkinson, CEO of NCR Voyix.
The company plans to use the proceeds from the sale to advance its financial goals, including reducing debt. This will facilitate increased strategic investment in its core business areas.
According to Benzinga Pro, VYX stock has lost 28% in the past year.
NCR Voyix also released its second quarter results.
The company reported adjusted earnings per share of 9 cents, missing the analyst consensus of 17 cents. NCR Voyix registered quartely revenues of $876 million compared to $928 million in the prior year and missed the consensus of $886.6 million.
NCR Voyix expects its net leverage ratio to be approximately 2.0x net debt/Adjusted EBITDA on a pro forma basis after the completion of the aforementioned transactions and the pay-down of a portion of its debt.
The company is also executing a multi-phase cost alignment program that began with the elimination of approximately $75 million in annualized payroll costs, including operational and capitalized costs, as of the end of the second quarter.
NCR Voyix has reduced its FY24 revenue guidance to $2.805 billion–$2.860 billion, down from the previous range of $3.60 billion–$3.70 billion and below the estimated $3.63 billion.
Price Action: VYX shares are trading higher by 0.48% to $12.56 at last check Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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