NORTH CANTON, Ohio, Dec. 18, 2015 /PRNewswire/ -- Diebold, Incorporated (NYSE: DBD) today announced it is forming a new joint venture with a subsidiary of the Inspur Group, a Chinese cloud computing and data center company, to develop, manufacture and distribute financial self-service solutions in China. Inspur will hold a majority stake of 51 percent in the new joint venture, which will be named Inspur Financial Information Systems, Ltd. The joint venture will offer a complete range of self-service terminals within the Chinese market, including automated teller machines (ATMs). Also, Diebold will serve as the exclusive distributor outside of China for all products developed by the new joint venture, which will be sold under the Diebold brand.
In addition, to support Diebold's services-led approach to the market, Inspur will acquire a minority share of Diebold's current China joint venture. Moving forward, this business will be focused on providing a whole suite of services including installation, maintenance, professional and managed services related to ATMs and other automated transaction solutions.
Inspur Group is an $8 billion Chinese multinational information technology provider headquartered in Jinan, Shandong, China, with more than 70 years in business. The company specializes in IT hardware and software, and is a leading self-service kiosk manufacturer for major financial institutions in China. Inspur's clients and business partners also include LG, IBM, Cisco, Microsoft, VMware and Micron.
"Partnering with Inspur enhances our competitive position and deepens the relationship with our customers in China," said Andy W. Mattes, Diebold president and chief executive officer. "Inspur's strong reputation as a leading China IT company with a global footprint allows our new joint venture to bring more innovative solutions to China's financial institutions and strengthens Diebold's go-to-market strategy in this important market. We look forward to re-igniting growth in China and are excited to work with Inspur to sell a complete suite of self-service products and related services."
"We are very happy to enter into this venture with Diebold, a well-respected global leader in financial self-service solutions, to continue growing our own presence in this market in China," said SUN Pishu, president and CEO of Inspur Group. "Inspur is one of the fastest-growing self-service technology providers in China. Combining both company's technology, sales expertise and existing presence in China will be of great value, both to our clients and our respective businesses."
Upon closing the agreement, Diebold will appoint a chairman of the new joint venture, while Inspur will appoint a chief executive officer for the business to lead day-to-day operations. The agreement is anticipated to be finalized in mid-2016, pending regulatory and other approvals, with plans to begin manufacturing and distribution activity immediately after regulatory approvals.
About Diebold Diebold, Incorporated (NYSE: DBD) provides the technology, software and services that connect people around the world with their money – bridging the physical and digital worlds of cash conveniently, securely and efficiently. Since its founding in 1859, Diebold has evolved to become a leading provider of exceptional self-service innovation, security and services to financial, commercial, retail and other markets.
Forward-looking statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include those concerning the anticipated benefits of the joint venture with Inspur and growth in the China market. Statements can generally be identified as forward-looking because they include words such as "will," "believes," "anticipates," "expects," "could," "should" or words of similar meaning. Statements that describe the company's future plans, objectives or goals are also forward-looking statements. Forward-looking statements are subject to assumptions, risks and uncertainties that may cause actual results to differ materially from those contemplated by such forward-looking statements. The factors that may affect the company's results include, among others: the company's ability to commence the joint venture with Inspur, including the timing and requirements of governmental and regulatory approvals, including Chinese foreign investment and anti-trust review; the success of the company's joint venture with Inspur; the success of the company's current joint venture as a complimentary service organization; the success of the proposed branding strategies; the impact of market and economic conditions on the financial services industry generally and in China specifically; the regulatory environment for the financial services industry generally and in China specifically; the capacity of the company's technology to keep pace with a rapidly evolving marketplace globally and specifically in China; pricing and other actions by competitors; the impact of the company's strategic initiatives; and other factors included in the company's filings with the SEC, including its Annual Report on Form 10-K for the year ended December 31, 2014 and in other documents that the company files with the SEC. You should consider these factors carefully in evaluating forward-looking statements and are cautioned not to place undue reliance on such statements. The company assumes no obligation to update any forward-looking statements, which speak only as of the date of this press release.
SOURCE Diebold, Incorporated