Shares of Diebold ( DBD) are down 8% so far this year but CEO Andreas Mattes said things are already looking up for 2016 when the ATM manufacturer completes its $1.8 billion acquisition of German-based Wincor Nixdorf ( WNXDY) .
"We are on a journey to become a services-led software enabled company, and this is going to propel us to a much bigger level," said Mattes.
The new company will be called Diebold Nixdorf and boast the largest installed base in the world with nearly one million bank-owned ATMs. According to Diebold, approximately one in three cash withdrawals made globally will be made at one of the combined company's ATMs. Diebold Nixdorf will also boast one of the largest services organization in the industry with more than 12,000 professionals globally.
Mattes expects the transaction, which will likely be completed in full by the middle of next year, to yield approximately $160 million of annual cost synergies. He said the combined company will target non-GAAP operating margin in excess of 9% by the end of the third full year following completion of the transaction.
Two companies are highly complementary and poised to serve the $60 billion addressable market, currently led by NCR ( NCR) , he added. In terms of the company's geographic footprint, he expects it to be 40% Europe/Middle East/Africa, 40% Americas and 20% Asia Pacific.
In addition, Diebold is introducing new concepts called "Irving" and "Janus" that combine mobile applications with machines and are secured via eye-scanning biometrics.