With the profitability of automatic teller machine (ATM) systems and solutions taking a dive, global services player Getronics has shed the financial self-service terminal (FSST) portion of its business in a $160 million cash sale to FSST systems specialist Diebold Incorporated.
Divesting itself of the ATM business -- an ex-Olivetti division that came under the Getronics umbrella after being inherited from Wang -- will allow Getronics to rid itself of all manufacturing and distribution interests.
"Getronics wants to remain vendor independent, and manufacturing of hardware is something that we don't want to be involved in," said Sue Gleave, communications director for Getronics Australia. "All other areas of the business are vendor independent."
The sale will see Diebold take control of all the manufacturing assets, sales and service business and assets as well as service contracts relating to the FSST business. It is a move touted as being good for both players.
Gleave said Getronics will still be focused on delivering "one-stop-shop at ICT [information communications technology] solutions in the finance and banking industry", and would still be partnering with Diebold in the future.
It was also claimed by Gleave that there was limited opportunity to build any significant value-added services around ATM technology.
"All hardware has become less profitable and ATMs are no different," she said. "It is not a core business for us. Banking solutions are a core business area for us but manufacturing of hardware for them is not."
With ATMs often being a component in larger solutions for Getronics customers, it is planned for FSST activities to be outsourced to third parties following the divestiture.
Claiming the sale would not negatively affect its customers, Sue Gleave, communications director for Getronics in Australia, also said no staff would be made redundant. Instead they would be either relocated within Getronics or retained by Diebold in the changeover.