"Diebold's acquisition of Phoenix is an important milestone in our drive to transform to a services-led, software enabled company," Diebold President and CEO Andy W. Mattes said.
GREEN, Ohio -- ATM manufacturer Diebold Inc. has acquired Phoenix Interactive Design Inc., an innovative Canadian software developer for ATMs and other financial self-service functions.
Phoenix, which calls itself one of the world's first providers of Windows-based multi-vendor ATM software, is known for delivering a consistent, user-friendly experience across in self-service and other banking functions, regardless of the vendor hardware used, according to Diebold. Its innovations include web-enabled ATMs, deposit automation, customer preferences and targeted marketing.
Based in London, Ontario, Phoenix's customers include TD Canada Trust, National Australia Bank Group, and Cincinnati-based Fifth Third Bank.
Terms of the deal were not disclosed.
Diebold Inc. President and CEO Andy Mattes sees acquiring Phoenix Interactive Design as key to Diebold's growth. "Diebold's acquisition of Phoenix is an important milestone in our drive to transform to a services-led, software enabled company," Diebold President and Chief Executive Andy W. Mattes said in a written announcement. "There are many synergies between our companies. We will integrate the talent of the Phoenix team and take advantage of our reach to expand the Phoenix solution in more global markets.
"Acquiring Phoenix is a key foundational move to accelerate our growth in the fast-growing managed services and branch automation spaces," he added.
Phoenix's approximately 200 employees are expected to join Diebold's global workforce of nearly 17,000, although the deal will not add jobs to the 1,800 at Diebold's headquarters in Northeast Ohio.
Diebold said Phoenix's expertise and capabilities will enable it to offer a "stronger, more compelling software solution" that complements Diebold's existing services in ATMs and security systems.
"Having Phoenix as part of Diebold helps the company in a number of ways," said Diebold spokesman Michael Jacobsen. "First, Phoenix has a software solution that's well-received and respected in our industry. With Diebold's global reach, we can scale that solution around the world.
"Second, with Phoenix, we're making an investment in the fastest-growing segment of the financial self-service industry (software/services at +20 percent Compound Annual Growth Rate)," he said. "Third, Diebold now has a best-in-class global footprint of multi-vendor, advanced function software customers (a fancy way of saying ... those banks using more than one ATM hardware manufacturer for their fleet, yet want a consistent, uniform consumer experience). This gives us instant credibility with the largest FIs [financial institutions] in the world."
Diebold's Executive Vice President of Software, Alan Kerr, will head the Phoenix operation, which the company said will serve as the foundation of its software business from now on.
"Coupling Phoenix with our global reach and resources, we expect Diebold to be a more integral partner in meeting FI demand for software functionality and ease of use, as well as ongoing demands in security and availability," Kerr said.
Phoenix's chief executive, Kyle MacDonald, is retiring from the industry but will remain active during the integration of the two companies.
"I am confident that Diebold will bring tremendous growth opportunities for the Phoenix team, and will add impressive value to Phoenix's clients," MacDonald said.
Diebold's shares opened at $33.41 on the news and jumped as high as $33.88 in Monday's trading before closing at $33.85, or 51 cents per share higher than Friday's close of $33.34.