27 Jul NCR and Scopus Tecnologia sign agreement to accelerate growth in Brazil
Excerpt of press release by NCR Corporation
NCR and Scopus form strategic alliance to invest in ATM manufacturing; Banco Bradesco signs agreement with a target for 30,000 ATMs – making NCR its preferred provider over the next five years and redefining the competitive landscape in Brazil.
DULUTH, Ga. – NCR Corporation (NYSE: NCR) and Scopus Tecnologia Ltda, a wholly-owned subsidiary of Banco Bradesco SA, announced today the formation of a strategic alliance for the manufacturing and development of ATMs in Brazil that will see Scopus acquire a 49 percent equity stake in NCR Manaus, NCR’s Brazilian manufacturing and engineering operations. Concurrently, BancoBradesco signed an agreement with a target for 30,000 ATMs over the next five years, making NCR its preferred ATM provider with an initial order for more than 6,000 ATMs from NCR Manaus. The agreement is subject to regulatory approval. Terms of the deal were not disclosed.
NCR’s sales, services and other employees will remain in a separate company and continue to deliver sales and services support to NCR’s broader customer base in Brazil.
The agreements will enable NCR to leverage Scopus’ deep technology knowledge and geographical presence, improve manufacturing productivity and deliver innovative products more quickly to financial institutions across Brazil, the world’s fourth largest ATM market. According to Retail Banking Research, the ATM market in Brazil is expected to increase by 27 percent by 2015.(1) The agreement from BancoBradesco will accelerate NCR’s growth in Brazil and enhance the company’s position in the market.
“This is a bold, strategic, and transformative alliance that is perfectly aligned with our corporate strategy as it expands and strengthens our geographic presence and sales coverage,” said NCR Chairman and CEO Bill Nuti. “It underscores why we ultimately decided to open our manufacturing facility in Manaus back in 2009 – namely to respond to customer demand for local sourcing and be closer to a dynamic growing market. The alliance will enable NCR to leverage Scopus’ local market presence and deep customer expertise, while helping us improve our manufacturing productivity and time to market.
“While the initial scope of this alliance is targeted at our Financial Services line of business, the alliance is not limited to just this industry segment. Both NCR and Scopus are excited with the potential of this alliance as it puts a solid foundation in place for us to jointly pursue growth and exciting opportunities in our other lines of business in the future,” Nuti added.
Through the preferred ATM provider agreement, BancoBradesco will benefit from NCR’s innovative ATMs and financial self-service technology, which includes multi-function and cash dispense ATMs.
These solutions will be deployed at Bradesco’s existing branches and rolled out to new locations as the bank extends its footprint in Brazil. NCR will service the ATMs within the warranty period, after which Scopus will provide services support.
“This agreement reflects our belief in a strategic alliance with NCR that can deliver the innovation necessary to meet the Brazilian market’s growing demand for self-service and enable Scopus to drive significant growth within its business,” said CandidoLeonelli, CEO of Scopus. “The combination of NCR and Scopus will give us both speed and efficiency in delivering a better experience for our customers.”
Since opening its manufacturing and engineering facility in Manaus in 2009, NCR has strengthened its competitive position by introducing products from its NCR SelfServ family of ATMs and well as adapting some products and technology specifically for the Brazilian market.
NCR has also invested in other industries in Brazil, announcing earlier in 2011 a new growth program and coverage model for its retail industry, introducing new technology and expansion of channel partnerships for Brazil.
Atlas Strategic Advisors, LLC, acted as exclusive financial advisor to NCR in this transaction.
Atlas Advisors is the marketing name for Atlas Advisors, LLC and Atlas Strategic Advisors, LLC. Atlas Strategic Advisors, LLC provides financial advisory services in connection with mergers, acquisitions and other similar transactions. Atlas Strategic Advisors, LLC is a wholly owned subsidiary of Atlas Advisors, LLC and a member of the FINRA.
None of the information contained in this release constitutes a recommendation, solicitation or offer by Atlas Strategic Advisors, LLC or its affiliates to buy or sell any securities, futures, options or other financial instruments or provide any investment advice or service.