ATM manufacturer Diebold Inc. (DBD) has entered into a preliminary deal to acquire its German peer Wincor Nixdorf AG for about €1.74 billion ($1.98 billion). The companies announced over the weekend that they are in deal discussions. North Canton, Ohio-based Diebold offered €52.50 per share, which would be paid in cash and stock. The offer is 32% more than Wincor’s Friday closing price of €39.40. According to Paderborn, Germany-based Wincor, the companies entered into a term sheet on Sept. 24 'regarding the key parameters of a potential strategic business combination.' The term sheet is legally non-binding. Diebold said that entry into a transaction 'is still subject to material conditions, including the satisfactory completion of due diligence by both parties.' While the two companies are well-known for their ATMs, The Deal's Laura Board notes that they are tilting their businesses towards software and services that are more likely to generate recurring revenue.