MaSSSoftech

GERMANY-based technology solutions provider Wincor Nixdorf International GmBH has set up shop in the country after its local distribution partner decided to focus on its core business.

The company, which commenced operations on June 1, operates as Wincor Nixdorf Philippines, Inc.

Wincor Nixdorf has realized its plan to establish a Philippine unit after its local partner, Siemens, Inc., decided to spin off its Information Technology Products & Services (ITPS) Division to allow it to focus on its core businesses as part of its global strategy.

The local unit of Siemens is into provision of industrial, medical, and information technology solutions, as well as power generation and transmission, among other businesses.

Siemens’ ITPS division was the distributor of Wincor Nixdorf’s softwares, automated teller machines (ATMs) and electronic point of sales (POS) systems in retail establishments in the country for eight years.

Wincor Nixdorf was formerly known as Siemens Nixdorf Informationssysteme, but the firm was split into two following a buyout by Kohlberk Kravis Roberts and Goldman Sachs Capital Partners in 1999 of the ATM and POS manufacturing and software development business. The Philippine unit of Siemens, on the other hand, remained as its partner in the country.

Wincor Nixdorf has been intent on setting up a local subsidiary as it considers the Philippines "a strategically important market."

"The most logical choice to divest the business was to the principal itself. I knew Wincor Nixdorf was keeping an eye on the Philippines. The opportunity presented itself so it was just a perfect fit," Ariel B. Gumabao, country manager of Wincor Nixdorf Philippines, told BusinessWorld.

He declined to disclose the price tag of the deal.

Wincor Nixdorf ranks second in terms of market share on installation of ATMs and POS systems in the country.

He said the company may dominate the market in two to three years’ time as presence of a local office provides it with greater flexibility in offering its full range of products and services.

Mr. Gumabao said the company is expecting its sales and business volume to grow by double digits this year as it takes advantage of expansion plans of its customers, which are mostly banks which set aside billions of pesos in capital expenditures for automation.