NCR Voyix, which provides payment processing tools to businesses, is looking to sell its digital banking unit, according to a recent report by Reuters. The company is looking to generate $3 billion from the sale.
Reuters’ source says that investment bank Goldman Sachs is assisting NCR Voyix in the process of exploring the market. There appear to be a number of suitors interested in NCR Voyix’s digital banking operation, with buyout firm TOG and global private equity firm Warburg Pincus believed to be first in the line.
NCR Voyix’s digital banking unit generates around 20% of the company’s annual revenue and is expected to generate $220 million of EBITDA (earnings before interest, taxes, depreciation, and amortization) this year. However, the payments processor is likely open to move from it in order to reduce its substantial debt which amounts to $2.6 billion.
The potential sale comes after NCR Corporation separated into two standalone publicly traded companies: NCR Voyix and NCR Atleos. NCR Voyix continued the digital commerce operations while NCR Atleos took over the company’s ATM business.
Since becoming a standalone company, NCR Voyix saw its value drop by roughly 20%. However, after Reuters’ report, the payment processor’s stock jumped by 4.16%, followed by another increase of 0.90% in after-market trading.