Magazine article American Banker

Rival Vendors See an Opportunity in NCR-Tidel Deal

Magazine article American Banker

Rival Vendors See an Opportunity in NCR-Tidel Deal

Article excerpt

Tidel Technologies Inc.'s competitors in the merchant automated teller machine market are hoping to capitalize on NCR Corp.'s deal to acquire Tidel's ATM business.

NCR, of Dayton, Ohio, is one of the top two ATM vendors but currently has no products for the off-premises market. The $10.1 million deal for Tidel's ATM operations, announced last month, is expected to close this year.

Eric Park, the chief operating officer for NexTran Industries Inc. in Hackensack, N.J., said it would take NCR some time to figure out how to do business in the merchant market and to absorb the corporate culture of Tidel, of Houston. There could be a cultural clash between NCR's sales force, which usually deals with banks, and Tidel's, which typically works with the independent sales organizations that manage fleets of nonbank ATMs, he said.

And while NCR is getting adjusted, NexTran will "step up and grab whatever market we can," Mr. Park said. "This is one of our greatest opportunities."

Dominic DiBlasio, the director of financial industry sales for Tranax Technologies Inc. of Fremont, Calif., said he was not worried about NCR's expansion into his turf, but he acknowledged that its size makes it a threat.

"We don't necessarily see that there's going to be an immediate cause for concern, but when NCR moves, the industry will be affected," Mr. DiBlasio said. "We'd be foolish not to be concerned about it."

NCR's deal is scheduled to close at the tail end of an upgrade cycle that has been driving demand this year for new ATMs, he said. MasterCard International has mandated that all ATMs support the Triple Data Encryption standard by yearend.

"We see the segment as being healthy right now, and in '06, as everybody becomes Triple DES compliant, the demands for that segment should decrease," Mr. …

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