NCR CORPORATION (NYSE:NCR) Files An 8-K Entry into a Material Definitive AgreementItem 1.01.
On April23, 2018, NCR Corporation (“NCR” or the “Company”) entered into a Master Services Agreement (the “Agreement”) with Jabil Inc. (“Jabil”). The Agreement provides for NCR to obtain manufacturing services from Jabil for NCR’s automated teller machines and self-service checkout solutions, primarily for NCR’s customers in the Americas. Once manufacturing is transitioned, the outsourced manufacturing services will cover products that the Company is currently producing in its two Columbus, Georgia area manufacturing plants, which will be closed.
The initial term of the Agreement is three years, and the Agreement renews automatically for one year periods thereafter unless NCR provides timely written notice of its intent to terminate. The Agreement requires Jabil to manufacture the covered products in accordance with the same specifications and quality standards that are implemented in NCR’s existing manufacturing facilities. The Company may purchase covered products from Jabil as needed to fulfill NCR customer orders, at agreed pricing for initial covered product models and agreed-upon price calculations for future adjustments and the addition of models and features. The Agreement also contains customary representations and warranties, limitations on liabilities, and indemnification obligations of the parties.
Jabil, a leading product solutions company providing comprehensive design, manufacturing, supply chain and product management services, has been producing and assembling NCR-designed printed circuit board assemblies (PCBAs) and other electronic subassemblies for NCR for nearly ten years. Jabil operates from over 100 facilities in 29 countries.
|Item 1.01.||Regulation FD Disclosure.|
Today, as a part of its previously announced initiative to evaluate and implement programs to drive sustainable margin improvement in its hardware and services segments through higher productivity, process efficiency, and, using technology as an enabler, NCR began announcing to its employees, customers and vendors its intention to streamline its manufacturing operations by closing two manufacturing plants in the Columbus, Georgia area and another in Beijing, China. NCR plans to move the manufacturing operations at those plants to other existing NCR facilities and to current third party suppliers, including Jabil. NCR believes that these moves will help it maintain its position as the global leader in ATMs, self-service checkout and point-of-sale devices as it accelerates its transformation to a software and services-led, data-driven business.
About NCR CORPORATION (NYSE:NCR)
NCR Corporation is a technology company that provides products and services that enable businesses to connect, interact and transact with their customers. The Company operates through four segments: Financial Services, Retail Solutions, Hospitality and Emerging Industries. Its portfolio of self-service and assisted-service solutions serve customers in the financial services, retail, hospitality, travel and telecommunications and technology industries. Its offerings include software and hardware solutions for automated teller machines (ATMs) and bank branches, retail and hospitality point of sale applications and devices, and self-service kiosks and software applications. The Company also offers a portfolio of services to support both its and third party solutions. It also resells third-party networking products and provides related service offerings in the telecommunications and technology sectors. The Company provides self-service kiosks and related operating software.