Diebold triples servicing deal with Bank of America

Diebold has been looking for new opportunities to generate revenue, and representatives have said automated teller machine servicing is one of the ways it would do so. In late December, Diebold went to one of its biggest customers, Bank of America Corp., and hammered out a deal that will pay the North Canton, OH-based Diebold $71 million a year for the next seven years.

Diebold had already serviced roughly 3,000 of Bank of America’s ATMs in the U.S, and has worked with BofA for about 30 years. But under the new servicing agreement, Diebold will cover 10,000 BofA ATMs, as well as other bank equipment. The previous servicing contract was valued at about $23 million per year. The increase in the new deal is $48 million annually.

The deal also involves BofA personnel. Roughly 1,000 BofA employees in its service group will be integrated into Diebold’s service group. The salaries of these employees will now be paid by Diebold. The new Diebold employees will mostly focus on servicing BofA ATMs for the next 12 months, according to a Diebold spokesperson.

Large banks, including BofA, often rely on several suppliers to service ATM networks. BofA representatives said it was looking to use fewer outside resources, allowing for more consistency throughout its network. Diebold will also provide maintenance for BofA’s central site processing equipment, physical security and office equipment, excluding PCs, alarms and branch automation.

Bank of America last year made a similar deal with Compaq Computer Corp. to service the bank’s computers.