Diebold

Diebold, Inc.

Type	Public
Traded as	NYSE: DBD
Founded	1859
Headquarters	Green, Ohio (North Canton mailing address)
Area served	Worldwide
Key people	Andy W. Mattes (President & CEO)
Products	Automated teller machines Drive-through banking equipment Electronic & Physical security Safes Vaults
Revenue	US$ 2.99 billion (FY 2012)[1]
Operating income	US$ 124.7 million < small>[1]
Net income	US$ 78.45 million (FY 2012)[1]
Total assets	US$ 2.59 billion (FY 2012)[1]
Total equity	US$ 809.96 million (FY 2012)[1]
Number of employees	16,000[1]
Divisions	Diebold North America Diebold International
Subsidiaries	Procomp Industria Eletronica S.A.
Website	www.diebold.com

Diebold, Inc. (/ˈdiːboʊld/, DEE-bold) is a United States-based financial self-service, security and services corporation that is engaged primarily in the sale, manufacture, installation and service of self-service transaction systems (such as ATMs), electronic and physical security products (including vaults and currency processing systems), and software and integrated systems for global financial and commercial markets. Diebold is the largest U.S. manufacturer of ATMs.^[2]

Diebold was incorporated under the laws of the State of Ohio in August 1876, and is headquartered in the Akron-Canton area; its mailing address is North Canton,^[3] although headquarters is physically in Green.^[4]

History

Diebold was founded in 1859 by Charles Diebold in Cincinnati, Ohio, under the name Diebold Bahmann Safe Company.^[5] It first began manufacturing safes and vaults for banks. In 1872 it moved its operations to Canton, Ohio. In 1876, after becoming incorporated, the company changed its name to Diebold Safe & Lock Company. In 1936 it expanded its product lines by acquiring companies that specialize in products such as rotary and visible files, and index and microfilming systems. It also began developing armor plate for military tanks that year. In 1943, Diebold Safe & Lock Company changed its name to Diebold, Incorporated. In 1965 it began offering pneumatic tube delivery systems to banks, hospitals, post offices, libraries, office buildings and many other industrial facilities. In 1970 it began offering Computer-controlled security and surveillance systems. Beginning in the 1970s it introduced various Automated Teller Machine products. In 2002 Diebold entered the United States elections industry through the acquisition of Global Election Systems, a leader in touch-screen voting technology.

On October 25, 2012, the company announced it was suspending plans to build a new world headquarters in Green, saying it was no longer economically feasible.^[6]

InterBold

Diebold and IBM created a general partnership called InterBold in 1991. The purpose of InterBold was to have IBM sell and service Diebold's ATMs outside of the United States. In exchange, IBM ceased marketing its own ATMs in the US. The InterBold partnership was dissolved in 1997 when Diebold purchased IBM's share of the partnership.^[7] IBM eventually entered into a re-distribution arrangement with a German competitor of Diebold, Wincor Nixdorf in some countries (but not all).

Premier Election Solutions / Diebold Election Systems

Premier Election Solutions, formerly Diebold Election Systems, was a subsidiary of Diebold, and was their smallest business segment,^[8] accounting for 2.4% of their gross revenue. It had entered the business of creating electronic voting terminals and solutions for government entities. Diebold entered this industry in 2001 by purchasing the assets of Global Election Systems which had been selling election equipment since 1991. This subsidiary was the subject of controversy amid allegations surrounding the security and reliability of some of its products.

In August 2007, DES rebranded itself^[9] as Premier Election Solutions. In 2009 it was sold to a competitor, Election Systems & Software.^[10]

Controversy

In August 2003, Walden O'Dell, then the chief executive of Diebold, announced that he had been a top fund-raiser for President George W. Bush and had sent a get-out-the-funds letter to 100 wealthy and politically inclined friends in the Republican Party, to be held at his home in a suburb of Columbus, Ohio.^[11]

In December 2005, O'Dell resigned following reports that the company was facing securities fraud litigation surrounding charges of insider trading.^[12]

In March 2007, it was reported by the Associated Press that Diebold was considering divesting itself of its voting machine subsidiary because it was "widely seen as tarnishing the company's reputation".^[8]

Diebold sold its U.S. election systems business, primarily consisting of its Allen, Texas-based subsidiary, Premier Election Solutions, Inc., to Election Systems & Software, Inc. (ES&S), a leading company in the election systems industry. The sale was consummated on September 2, 2009. Diebold is no longer involved with any election systems in the United States.

In August 2007, Wikipedia Scanner found that edits via the company's IP addresses occurred to Diebold's Wikipedia article, removing criticisms of the company's products, references to its CEO's fund-raising for President Bush and other negative criticism from the Wikipedia page about the company in November 2005. These criticisms were later moved to a more appropriate page.^[13]

Controversies with regards to Diebold INDIA

^[14]

There has been charges of discrimination (Pending in court) on Diebold India Program manager (Prasad Sayee) and Director (Suresh Babu) of the company. A discrimination case has been filed in local police station in this regard (FIR number 849/2013), by an ex-employee of the company. First information report has been prepared in this regard by the prima facia evidence showed. They have been granted Interim stay until November 29, 2013.

Extension to time has been sought to avoid the preliminary investigation. The status of the case is still PENDING, as mentioned in the high court's website of AP, INDIA.

Diebold India

Diebold has set up its branches in INDIA located in Mumbai and Hyderabad. The Hyderabad branch office caters for the below mentioned facilities. Hyderabad office is also termed as Global development center(GDC)/ ITAC/GBS.

Currently four verticals are operating from GDC facility.

 Information Technology Application Center (ITAC)
 Global Business Services (GBS)
 India Development Center (IDC)
 Professional Services (PS)

ITAC – A True Global IT team in action

ITAC is termed as Information technology Application center, providing support base to the Diebold business community, related to the Oracle 11i and R12 Implementations. ITAC has been formed and is operational from November 2006. It is located in V-Ascendas park, Hitechity, 9th Floor, Vega block. The various services include SCM, CRM, FINANCE, SHAREPOINT, etc. The professionals in ITAC provide support related to Technical and Functional. The IT strength is around 80+ people.

Buyout attempt

In March 2008, United Technologies Corporation, a large engineering and defense conglomerate, announced it had made a $2.63 billion bid to buy Diebold, which was later rejected as too low.^[2] In October 2008 UTC announced it was breaking off acquisition talks.^[15]

Competitors

Banking hardware

• NCR
• Wincor Nixdorf
• Fujitsu
• GRGBanking
• KEBA
• Hyosung

See also

• Premier Election Solutions, formerly Diebold Election Systems
• Diebold 10xx
• 2004 United States election voting controversies

References

External links

• Official Diebold site
• Official ATM and bank supplies site for Diebold
• Official identification supplies and access control site for Diebold
• Companies with 50+ years of dividend increases Diebold has the record for consecutive dividend increases.