NCR Voyix to sell digital banking division to Veritas Capital for $2.45bn

In a significant development in the financial technology sector, NCR Voyix Corporation (NYSE: VYX) has announced it will sell its cloud-based digital banking business to Veritas Capital for $2.45 billion in cash. The deal also includes the potential for up to $100 million in additional contingent consideration. This move marks a pivotal shift for NCR Voyix, a leading provider of digital commerce solutions, as it aims to refocus on its core business areas.

Transaction Details and Strategic Focus

NCR Voyix’s digital banking division is renowned as the largest independent digital banking platform in the United States. The platform boasts a comprehensive, digital-first product suite that serves over 1,300 top-tier financial institutions and more than 20 million active users. It provides a seamless, secure, and top-rated user experience, which positions it strongly for future growth and innovation.

David Wilkinson, CEO of NCR Voyix, emphasized the strategic fit of Veritas Capital as the new owner. He stated, “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.” Wilkinson noted that this transaction will enable NCR Voyix to enhance shareholder value by strengthening its financial position and focusing on its core restaurant and retail sectors.

Veritas Capital’s Vision for Growth

Veritas Capital, a prominent investor in technology and government sectors, views this acquisition as an opportunity to leverage the digital banking platform’s pioneering capabilities. Ramzi Musallam, Chief Executive Officer and Managing Partner at Veritas, described the platform as a “pioneer in mobile and online banking with a superior value proposition and significant runway for growth.” Musallam expressed confidence that the acquisition would empower financial institutions with innovative banking tools and solutions.

Brendan Tansill, Executive Vice President and President of Digital Banking at NCR Voyix, highlighted the strategic advantage of partnering with Veritas. He remarked, “Our Digital-First solution suite has been strategically designed to grow and expand with our customers over time as their retail and business banking distribution and customer engagement strategies evolve.” Tansill anticipates that Veritas’s track record of successful business carveouts will drive continued growth and innovation.

Impact on NCR Voyix’s Core Business

The sale of NCR Voyix’s digital banking business is part of the company’s broader strategy to streamline operations and concentrate on its core offerings for restaurants and retailers globally. The proceeds from the transaction will be used to de-leverage the balance sheet and accelerate strategic investments in NCR Voyix’s core business areas.

The transaction has received approval from NCR Voyix’s Board of Directors and is anticipated to close by the end of the year, pending customary closing conditions and regulatory approvals. Goldman Sachs & Co. LLC served as financial advisor, while King & Spalding provided legal counsel to NCR Voyix. Evercore acted as financial advisor and Gibson, Dunn & Crutcher LLP served as legal counsel for Veritas.

Strategic Moves and Market Implications

The sale of NCR Voyix’s digital banking division to Veritas Capital is a strategic move that underscores the evolving landscape of financial technology. By focusing on its core markets and leveraging the capital from this deal, NCR Voyix aims to enhance its competitive edge in the restaurant and retail sectors. For Veritas, the acquisition represents a substantial opportunity to expand its portfolio with a leading digital banking platform poised for growth.