United Technologies Corp. (UTC) has offered to buy Diebold Inc. for $2.63 billion, taking its bid public after the electronic security integrator and manufacturer declined to discuss a merger for more than two years.
UTC is offering $40 a share, a 66-percent premium to Diebold’s share price Feb. 29 of $24.12. Diebold’s board last refused to discuss a buyout Feb. 21, according to news reports.
“This transaction creates significant and immediate value for Diebold shareholders with no operational risk, while creating long-term value for UTC shareholders,” UTC Chairman and CEO George David said in a news release.
The move is the latest by George to expand the company’s fledgling UTC Fire & Security business through acquisitions.
UTC has in the past few years bought Lenel Systems Int’l Inc, a security systems and software developer; Chubb, a fire safety and security services business; and Kidde, a British fire and safety company.
About 25 percent of Diebold’s revenue last year came from its security business. The acquisition would thrust UTC into some new lines of business, such as automated teller machines and voting machines.
The company said it would finance the deal from cash reserves and other readily available funds.
