(Bloomberg) -- NCR Voyix Corp. has struck a deal to sell its digital banking business to buyout firm Veritas Capital, streamlining its operations to focus on software for retailers and restaurants.
Veritas is paying about $2.45 billion in cash plus a future additional contingent consideration of up to $100 million for the unit, according to a statement Tuesday that confirmed an earlier Bloomberg News report.
NCR Voyix, which encompasses the digital commerce businesses of the former NCR Corp., had been working with an adviser to solicit interest in the cloud-based digital banking unit, targeting industry players as well as private equity firms, people familiar with the matter said.
Shares in NCR Voyix, which have lost 26% this year, jumped as much as 16% in premarket trading early Tuesday on the news. The stock closed Monday at $12.50, giving the Atlanta-based firm a market value of about $1.8 billion.
The digital banking platform is the largest of its kind in the US and serves more than 1,300 financial institutions and over 20 million active users, according to the statement. It generated revenue of $579 million in 2023. The sale of the division will help the company pay down its debt, which stands at about $2.9 billion, according to data compiled by Bloomberg.
NCR separated into two public companies — NCR Voyix and NCR Atleos Corp. — in October in a breakup that was partly the result of a push by activist investor Engaged Capital. NCR Atleos houses the firm’s ATM business.
Goldman Sachs Group Inc. and King & Spalding advised NCR Voyix, while Evercore Inc. and Gibson Dunn & Crutcher LLP advised Veritas. Paul Hastings LLP represented UBS Group AG, Citigroup Inc. and RBC as lenders in connection with the deal.
(An earlier version of this story corrected revenue and description of digital banking unit.)
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