NCR Confirms Investment From Blackstone Group

NCR Corp.'s stock climbed 4.5% in premarket trade Thursday, after the ATM machine maker said it reached a deal with private-equity firm Blackstone Group , in which it will receive an equity investment of $820 million. NCR said it will use the investment to help fund share repurchases of up to $1 billion worth of common stock. The Wall Street Journal reported late Wednesday that a deal was in the works. The investment will be in the form of perpetual preferred stock, which will be convertible into common stock at $30 a share, which is 12% above Wednesday's closing price of $26.78. The share repurchases will come in the form of a modified Dutch Auction tender offer at an expected price range between $26 and $29.50 a share, beginning Nov. 13. "After concluding a comprehensive review of strategic alternatives, the NCR Board has determined that executing our strategic plan with Blackstone's assistance is the best way to accelerate NCR's transformation and build long-term shareholder value," NCR Chief Executive Bill Nuti said in a statement. NCR's stock has lost 8.1% year to date through Wednesday while the S&P 500 has gained 0.8%.