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17 December 2009

Diebold Celebrates 10th Anniversary of Procomp Acquisition With Marked Achievements and Growth in Brazil

NORTH CANTON, Ohio, Dec 17, 2009 /PRNewswire-FirstCall via COMTEX/ -- Ten years ago, Diebold, Incorporated (NYSE: DBD) solidified its leadership position in the South American market by completing a $225 million acquisition of Procomp, a leading provider of information technology (IT) and self-service solutions based in Sao Paulo, Brazil. Since that time, the organization now known as Diebold Brazil has helped strengthen Diebold's global presence by winning some of the largest automated teller machine (ATM) contracts in the company's history. Diebold Brazil has also contributed to the company's expertise in software, systems integration, and the development of key new products and services, such as its award-winning outsourcing solutions -- Diebold Integrated Services(R).


Since Diebold acquired Procomp in 1999, Diebold Brazil helped pave the way for new approaches to optimizing costs, management and productivity of financial institutions' ATM channels through outsourcing. In response, Diebold began developing its industry-leading Diebold Integrated Services platform for other global markets.

Diebold Brazil currently employs more than 3,000 associates throughout the country and has the largest self-owned IT services organization in the country -- with two dedicated manufacturing locations in Manaus that, since 1992, have been producing a full range of ATM solutions that meet the unique requirements of the Brazilian market. Since 1999, Diebold Brazil has delivered more than 100,000 ATMs and other self-service terminals, with an additional 480,000 voting machines to customers in Brazil.

Other highlights of Diebold Brazil's first 10 years include:

  • In 2001, Brazil's third largest bank, Caixa Economica Federal (CEF), signed Diebold's first instance of "complete outsourcing" of an ATM network in Brazil for the bank's nearly 500 "Blue Rooms" nationwide.
 
  • In 2002, Diebold won a $43 million contract with CEF to supply 1,800 branches with ATMs, check dispensing terminals and related services.
 
  • In 2005, Diebold's advanced function Opteva(R) ATM was established on the South American continent at a Bradesco Bank branch on the campus of the University of Sao Paulo in Brazil.
 
  • In 2008, CEF signed one of the largest ATM sales agreements in history by purchasing and integrating more than 9,600 Diebold full-function ATMs into its existing fleet at its branches across the country. The custom-designed units featured biometric identification for customers and biometric identification with smart card capabilities for authentication of ATM operators and service technicians.
 
  • In 2008, Brazil's largest financial institution, Banco do Brasil, purchased more than 5,400 ATMs and check dispensers. The new ATMs included advanced security technology such as an encrypted PIN pad and advanced anti-skimming device technologies.
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"This acquisition represented an important part of Diebold's globalization strategy because Procomp was -- at the time -- the world's sixth largest ATM manufacturer," said Thomas W. Swidarski, Diebold president and chief executive officer. "More importantly, though, Procomp's diversity of product and scope allowed Diebold to expand into new directions and offer a more comprehensive global product line. And, as Brazil's economy and population continues to grow today, we're poised to help financial institutions around the region keep pace with innovative technology and services that deliver reliability, convenience and high-level functionality that strengthen customer loyalty."

Joao Abud, Jr., president, Diebold Brazil, said, "While our offerings and innovations have clearly grown over the past decade, Diebold looks ahead to expanding networks within and outside of Brazil to further help financial institutions capture, serve and compete for customers while improving efficiency and productivity through self-service and security outsourcing."

About Diebold

Diebold, Incorporated is a global leader in providing integrated self-service delivery and security systems and services. Diebold employs more than 17,000 associates with representation in nearly 90 countries worldwide and is headquartered in Canton, Ohio, USA. Diebold is publicly traded on the New York Stock Exchange under the symbol 'DBD.' For more information, visit the company's Web site at http://www.diebold.com/, or visit www.diebold.com/150 to learn more about Diebold's 150-year history.

SOURCE Diebold, Incorporated

Contact(s):
Investor Relations
Christopher Bast
+1 330.490.6908
christopher.bast@diebold.com