Diebold Inc. reached an agreement in principle to chase the majority interest in a Mexican ATM distributor Hidromex, SA de CV. Terms were not disclosed.
Hidromex, which sells and services ATMs for Interbold, the joint venture between Diebold and International Business Machines Corp., has been Diebold's ATM distributor in Mexico since 1987. The related businesses being acquired also distribute physical and electronic security equipment and Compaq computers.
Diebold said it expects Mexican government approval for the purchase, which should be completed later this year.
Hidromex, based in Mexico City, has annual revenues from ATM sales and services of about $25 million. Over the past three years, the company has sold 3,200 Diebold ATMs in Mexico, capturing more than 80% of that country's total market.
Diebold, based in Canton, Ohio, had revenues of $543.8 million in 1992 and earnings of $41.1 million.