Divestiture • Information Technology

Goldman Sachs Merchant Banking and KKR Acquire Wincor Nixdorf AG

On October 1, 1999, private equity firms Goldman Sachs Merchant Banking and KKR acquired information technology company Wincor Nixdorf AG from Siemens for 800M USD

Acquisition Context
  • This is Goldman Sachs Merchant Banking’s 1st and KKR’s 1st transaction in the Information Technology sector.
  • This is Goldman Sachs Merchant Banking’s 33rd and KKR’s 85th largest (disclosed) transaction.
  • This is Goldman Sachs Merchant Banking’s 2nd and KKR’s 1st transaction in Germany.
Investment Fate
  • Wincor Nixdorf AG went public in 2004.
  • Wincor Nixdorf AG was sold to a strategic buyer in 2015 for 1.8B USD.

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M&A Deal Summary

Date October 1, 1999
Target Wincor Nixdorf AG
Sector Information Technology
Buyer(s) Goldman Sachs Merchant Banking
KKR
Sellers(s) Siemens
Deal Type Divestiture
Deal Value 800M USD

Target Company

Wincor Nixdorf AG

Paderborn, Germany
Wincor Nixdorf is a provider of IT solutions and services to retail banks and the retail industry. The main focus of the group's comprehensive portfolio lies on business process optimization, especially in the branch operations of both sectors. The company also places great importance on building close relationships with sales partners that have an excellent knowledge of the local requirements and conditions on the customer side.
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Buyers Overview 2

Buyer

Goldman Sachs Merchant Banking

New York, New York, United States

Investor


Category Private Equity Firm
Founded 1986
PE ASSETS 155.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Goldman Sachs Merchant Banking Division is the investment arm of Goldman Sachs. The primary corporate investment group within the Merchant Banking Division is Goldman Sachs' direct investment arm. GS's direct investment arm consists of GS Capital Partners, GS Mezzanine Partners, and GS Growth Partners. GS Capital Partners is the direct corporate equity investment group which seeks LBO, recapitalization, and growth investments to help fund acquisitions, expansions, recapitalizations, restructurings, buyouts, and take privates. GS Capital Partners looks to invest between $50 and $800 million in opportunities in North/South America, Europe, Asia. GS Mezzanine Partners is the junior capital arm of Goldman Sachs. GS Mezzanine looks to invest between $200 million and and $800 million in transactions valued up to $10 billion. Investment proceeds are used to fund leveraged buyouts, expansion financings, recapitalizations, acquisitions, and restructurings. GS Growth looks to invest in growth equity transactions. The unit seeks to commit $20 to $200 million per investment. Other units within GS's merchant banking division include Real Estate, Infrastructure, and Urban Investments. Goldman Sachs Merchant Banking Division is based in New York City.


Deal Context for Buyer #
Overall 5 of 189
Sector: Information Technology 1 of 16
Type: Divestiture 1 of 13
Country: Germany 2 of 7
Year: 1999 1 of 1
Size (of disclosed) 33 of 51
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
1999-02-01 Western Wireless

Issaquah, Washington, United States

Western Wireless Corporation is a cellular network operator that provided mobile telecommunications service to subscribers in 19 western states and seven countries.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2000-03-29 Seagate Technology

Dublin, Ireland

Seagate Technology is a provider of technology and products enabling people to store, access, and manage information. The Company is committed to providing best-in-class products to help people get information when, where and how they want it. Seagate is the world's largest manufacturer of disc drives magnetic discs and read-write heads, an innovator in tape drives, and a leading developer of Business Intelligence software. Seagate Technology was founded in 1978 and is based in Dublin, Ireland.

Buy $2.0B
Buyer

KKR

New York, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1976
PE ASSETS 267.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION
KKR's office in Menlo Park, California.
KKR's office in Menlo Park, California.

KKR is a global investment firm founded by Jerome Kohlberg, Henry Kravis, and George Roberts. The Firm is separated into several business segments including private markets, public markets, capital markets, and other principal activities. KKR's private equity practice invests in management buyouts, take privates, corporate divestitures, industry consolidations, and partnerships with family-owned companies. KKR will invest in a broad range of industries and companies and will consider businesses throughout North America, Europe, Asia, and Australia/New Zealand. Sectors of interest include chemicals, consumer products, energy and natural resources, financial services, healthcare, industrial, media/communications, retail, and technology. In addition to its traditional principal investment activity business, KKR also invests in infrastructure assets. KKR was formed in 1976 and is based in New York, New York.


Deal Context for Buyer #
Overall 13 of 503
Sector: Information Technology 1 of 28
Type: Divestiture 4 of 54
Country: Germany 1 of 25
Year: 1999 1 of 2
Size (of disclosed) 85 of 110
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
1999-07-23 Randall s Food Markets

Houston, Texas, United States

Randall's Food Markets, Inc. a privately owned 116 store Texas-based supermarket chain, operates 46 Randalls stores in the Houston area, 12 stores in Austin and 58 Tom Thumb stores in the Dallas/Ft. Worth area.

Sell $1.4B
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
1999-11-28 DZS

Plano, Texas, United States

DZS designs and manufactures network equipment for telephone companies and cable operators worldwide to deliver a rich array of voice, data, video, and entertainment services. DZS was incorporated in 1996 and is based in Plano, Texas.

Buy $500M

Seller Profile 1

SELLER

Siemens

Munich, Germany

Category Company
Founded 1847
Sector Diversified
Employees320,000
Revenue 75.9B EUR (2024)
DESCRIPTION
Siemens office building in St. Louis, Missouri.
Siemens office building in St. Louis, Missouri.

Siemens is a global engineering and electronics conglomerate company headquartered in Munich. Siemens serves a variety of customers and is organized in in four main divisions: Industry, Energy, Healthcare, and Infrastructure & Cities. Siemens was founded in 1847 and is based in Munich, Germany.


Deal Context for Seller #
Overall 4 of 27
Sector: Information Technology 1 of 4
Type: Divestiture 2 of 23
Country: Germany 3 of 16
Year: 1999 2 of 2
Size (of disclosed) 4 of 11
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
1999-04-01 Infineon Technologies

Neubiberg, Germany

Infineon Technologies offers semiconductors and system solutions for automotive and industrial electronics and chip card and security applications. Infineon Technologies was founded in 1999 and is based in Neubiberg, Germany.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2000-01-01 Entex IT Service

Rye Brook, New York, United States

Entex IT Service, Inc. provides computer owners with a clear and easy set up process.

Buy -