Altron sells ATM hardware and support business unit
R180.87m deal with NCR Corporation advances the group’s transition to a digital technology business focusing on the cloud, data analytics, the internet of things and security
27 October 2022 - 14:12
by Mudiwa Gavaza
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Altron has sold its ATM hardware and support business unit, the latest in a series of disposals to streamline operations and focus on its core technology business in growth areas such as the cloud, data analytics, the internet of things, and security.
The group said on Thursday it had entered into an agreement to hive off the unit to NCR Corporation for a maximum of $10m (R180.87m). The price has been capped, pending fulfilment of certain conditions, including setting off the unit’s assets against liabilities, which include trade payables and accruals.
After separately listing its biggest money-spinner, Bytes Technology, in 2020, Altron’s business in the rest of Africa had been billed as the focus for growth, but the strategy has since changed given the reliance of these operations on hardware.
The group — valued at R3.48bn — says it aims to be “a capital-light digital transformation and related solutions provider.”
NCR Corporation specialises in software, hardware and services for banks, retailers, restaurants, small businesses and telecom.
Altron’s ATM hardware and support business comprises sales of ATM hardware, implementation, licensing, repairs and maintenance. It also has a NCR approved re-work centre, as well as managed services for cash automation technologies.
The group says its managed solutions division will continue to operate “all remaining portfolios” including its retail solutions, end-user computer support, cloud platform and software solutions.
For the six months ended August 2022, the ATM hardware and support business generated revenue of R544.6m, earnings before interest, tax, depreciation and amortisation of R36.6m, and an operating profit of R23.2m.
This deal shaves off yet another business that the group had deemed noncore. Earlier in the year, it sold its Document Solutions unit for R715m.
In October 2021, the group sold its training services unit, Altron People Solutions, for an undisclosed amount. Altron Arrow, which distributes electronic components, was on the chopping block but has been reclassified as a continuing operation
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Altron sells ATM hardware and support business unit
R180.87m deal with NCR Corporation advances the group’s transition to a digital technology business focusing on the cloud, data analytics, the internet of things and security
Altron has sold its ATM hardware and support business unit, the latest in a series of disposals to streamline operations and focus on its core technology business in growth areas such as the cloud, data analytics, the internet of things, and security.
The group said on Thursday it had entered into an agreement to hive off the unit to NCR Corporation for a maximum of $10m (R180.87m). The price has been capped, pending fulfilment of certain conditions, including setting off the unit’s assets against liabilities, which include trade payables and accruals.
After separately listing its biggest money-spinner, Bytes Technology, in 2020, Altron’s business in the rest of Africa had been billed as the focus for growth, but the strategy has since changed given the reliance of these operations on hardware.
The group — valued at R3.48bn — says it aims to be “a capital-light digital transformation and related solutions provider.”
NCR Corporation specialises in software, hardware and services for banks, retailers, restaurants, small businesses and telecom.
Altron’s ATM hardware and support business comprises sales of ATM hardware, implementation, licensing, repairs and maintenance. It also has a NCR approved re-work centre, as well as managed services for cash automation technologies.
The group says its managed solutions division will continue to operate “all remaining portfolios” including its retail solutions, end-user computer support, cloud platform and software solutions.
For the six months ended August 2022, the ATM hardware and support business generated revenue of R544.6m, earnings before interest, tax, depreciation and amortisation of R36.6m, and an operating profit of R23.2m.
This deal shaves off yet another business that the group had deemed noncore. Earlier in the year, it sold its Document Solutions unit for R715m.
In October 2021, the group sold its training services unit, Altron People Solutions, for an undisclosed amount. Altron Arrow, which distributes electronic components, was on the chopping block but has been reclassified as a continuing operation
gavazam@businesslive.co.za
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