NCR Voyix has sold its digital banking platform to Veritas Capital for approximately $2.5 billion, a move designed to address stock market volatility and emphasize long-term growth. This sale enables NCR Voyix to reduce debt and improve its operating leverage while leveraging Veritas Capital’s growth-focused investment strategy.
The digital banking unit of NCR Voyix reported annualized revenues of $579 million, servicing 1,300 financial institutions (FIs) across the U.S. The unit achieved a 9% increase in Q2 revenues, reaching $154 million. Despite an overall 7% decline in the company’s total revenues to $876 million, the digital banking segment experienced growth in average revenues per unit and an increase in active user count.
NCR Voyix CEO David Wilkinson noted the digital banking unit’s distinct end-to-end solutions that integrate both physical and digital channels. Executive Vice President Brendan Tansill highlighted that Veritas Capital’s investment approach focuses on long-term growth rather than quick returns, differentiating them from private equity firms that prioritize short-term gains. Veritas Capital’s substantial investment is anticipated to bolster the digital banking unit during its transition period.
The separation process will involve hiring 200 new employees and ensuring a smooth transition for existing customers. Veritas Capital’s expertise in managing corporate carve-outs will be crucial in maintaining customer satisfaction and supporting the digital banking unit as it becomes fully independent. The goal is to make the transition as seamless as possible for clients, leveraging Veritas Capital’s resources to enhance the unit’s capabilities and growth prospects.