NCR - NCR plunges 22% after ending sales process agrees to split into two companies (update)

Update 9:35am: Updates shares.

NCR Corp. ( NYSE: NCR ) plummeted 22% after it ended a process to sell itself and decided to split into two companies.

NCR's ( NCR ) board approved a plan to separate NCR into two independent, publicly traded companies – one focused on digital commerce, the other on ATMs, according to a statement. The separation is intended to be structured in a tax-free manner and is targeted for the end of next year.

“Throughout the strategic review process, we received material interest in a whole company sale of NCR, as well as interest in various individual segments of our business," Frank R. Martire, executive chairman of NCR's board said in the statement. "In recent days, it has become increasingly clear to the Board that, given the state of current financing markets, we cannot deliver a whole company transaction that reflects an appropriate and acceptable value for NCR to our shareholders.”

The end of the strategic review comes after WSJ in July said Veritas Capital was in exclusive talks to purchase the company. Late last month CNBC reported that Veritas was still trying to obtain financing for a deal.

The NCR board engaged BofA Securities, Goldman Sachs and Evercore as financial advisors during the strategic review process.

NCR, a technology provider for retail stores, restaurants and banks, initiated a strategic review in February.

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