NCR, ahead of break-up, mulls sale of digital banking unit -sources

By Milana Vinn and David French

NEW YORK (Reuters) - NCR Corp, the ATM and financial software vendor preparing to break into two companies, is considering a sale of its digital banking business that could be worth more than $2 billion, according to people familiar with the matter.

The company has held talks with its financial advisers about the possibility of launching a sale process for the digital banking unit, the sources said.

Digital banking provides operational software to more than 600 banks and credit unions and sits within NCR's digital commerce division.

NCR said last September it planned to separate into two publicly listed companies by the end of 2023: one holding its ATM unit and the other housing its digital commerce operations, which provide payments solutions to companies and small businesses.

NCR executives have said that they remained open to selling parts of the business prior to the split, if it offered better value to shareholders.

The sources, who requested anonymity because the deliberations are confidential, cautioned that no decision has been made and NCR may choose to retain the digital banking unit for its digital commerce division.

A spokesperson for NCR declined comment.

NCR's digital banking unit was projected to generate about $257 million of earnings before interest, tax, depreciation and amortization in 2023, according to a research note from Stephens Inc analysts in September.

Founded in 1884 as the National Cash Register Company, NCR was bought by AT&T in 1991 for $7.4 billion, before being spun out of the U.S. wireless carrier at the start of 1997.

The Atlanta-based company's shares have dropped 24% in the last 12 months, giving it a market value of $3.4 billion. NCR had debt net of cash as of the end of March of more than $5 billion.

(Reporting by Milana Vinn and David French in New York; Editing by Leslie Adler)