|Industry||Banking & Security|
(as Diebold Bahmann Safe Company)|
Cincinnati, Ohio, U.S.
|Headquarters||Green, Ohio (North Canton mailing address), United States|
|Andy W. Mattes (CEO)|
|Products||Automated teller machines, banking-industry services and software, drive-through banking equipment, electronic & physical security, safes, vaults|
Number of employees
|Divisions||Diebold North America / Europe, Middle East and Africa / Asia Pacific / Latin America|
|Subsidiaries||Procomp Industria Eletronica S.A., Phoenix Interactive Design, Cryptera|
Diebold was an American financial self-service, security and services corporation. A part of Diebold Nixdorf since August 2016, the entity is internationally 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), software and related services for global financial and commercial markets. Founded in 1859 in Cincinnati, Ohio as the Diebold Bahmann Safe Company, after becoming incorporated in Ohio in 1876 the company changed its name to Diebold Safe & Lock Company. Currently headquartered in the Akron-Canton area with facilities in nearby Green, in 1921 Diebold sold the world's largest commercial bank vault to Detroit National Bank. Diebold has since branched into diverse markets, and is currently the largest provider of ATMs in the United States. With 2015 revenues of US$2.42 billion, Diebold acquired Germany's Wincor Nixdorf in 2016, integrating it to form Diebold Nixdorf. It is estimated that Diebold Nixdorf controls about 35 percent of the global ATM market.
- 1 History
- 1.1 Diebold Safe & Lock Company to Diebold, Incorporated (1859-1960s)
- 1.2 Computer security and ATMs (1960s-1990s)
- 1.3 International growth (1998-2001)
- 1.4 Diebold Election Systems and UTC (2002-2009)
- 1.5 New facilities and acquisitions (2010-2013)
- 1.6 Recent years and Wincor Nixdorf merger (2014-2016)
- 2 Markets and services
- 3 Products
- 4 Diebold Foundation
- 5 Awards and recognition
- 6 See also
- 7 References
- 8 External links
Diebold Safe & Lock Company to Diebold, Incorporated (1859-1960s)
Diebold was founded in 1859 in Cincinnati, Ohio as the Diebold Bahmann Safe Company. Under the leadership of founder Charles Diebold, a German immigrant, the company's 250 initial employees began manufacturing safes and bank vaults out of a factory in Canton, Ohio. Diebold states that 878 of its safes protected some of the only undamaged property in the Great Chicago Fire of 1871, and the following year Diebold moved its operations and headquarters to Canton to meet increased demand. In 1874, Diebod was contracted to build the word's largest safe, to be installed in the San Francisco branch of Wells Fargo. In 1876, after becoming incorporated in Ohio, the company changed its name to Diebold Safe & Lock Company. Diebold secured its first international sale in 1881, when it built a safe for the President of Mexico. Diebold debuted manganese steel doors marketed as TNT-proof in 1890, and in 1921, Diebold sold the world's largest commercial bank vault to Detroit National Bank. Diebold became a publicly traded company in the 1930s. Also around that time, Diebold introduced a "robbery-deterrent system for banks that flooded the bank lobby with tear gas" to help deal with robbers such as the infamous John Dillinger.
In 1936, Diebold expanded its product lines by acquiring companies specializing in products such as paper-based filing systems, and it began developing armor plate for military tanks that year. Between 1939 and 1945, Diebold devoted 98 percent of its activities to the war effort. Among other projects, during World War II Diebold employed around 2,900 workers and "sold $65 million in armor plate for more than 36,000 U.S. Army scout cars," particularly the M2 Scout car model. In 1943, Diebold Safe & Lock Company changed its name to Diebold, Incorporated, in an effort to reflect the company's increasing diversification of products. The prohibition agent Eliot Ness was on the Diebold board from 1944 until 1951, and in 1952 Raymond Koontz was named Diebold's president, after first joining Diebold as an assistant to the president in 1947. Diebold earned a net income of $1.7 million in 1959.
Computer security and ATMs (1960s-1990s)
On April 27, 1964, Diebold went public on the New York Stock Exchange with the ticker symbol NYSE: DBD. In 1965 Diebold began offering pneumatic tube delivery systems to diverse institutions including banks and post offices. Still involved in safes and vaults, in 1968 the First National Bank of Chicago purchased the world's largest double vault doors from Diebold. Diebold subsequently began offering computer-controlled security and surveillance systems in 1970. In the early 1970s, Diebold's president Raymond Koontz began pushing the company into the then emerging market for automated teller machines. Between the early 1950s and the late 1970s, Diebold's annual revenue increased from USD$229 million to $451 million.
Diebold's "monitoring center" opened in 1985, allowing Diebold to monitor its "ATMs, kiosks, facilities and operations" full-time from a singular facility. Robert Mahoney was appointed company CEO in 1985. Koontz retired as chairman in 1988, although he continued to serve on the board. In 1989, Diebold shipped 12 percent of the world's ATMs sold worldwide. Diebold partnered with IBM on InterBold in 1990, a joint venture chiefly formed to provide self-service products for the financial industry. Under the terms of the joint venture, Diebold marketed their combined ATM lines in the US, while IBM marketed them abroad. By September 1995, Diebold was making over half of the ATMs used in the United States. In 1996, Diebold generated USD$1 billion in revenue as a company for the first time in a single year. The InterBold partnership was dissolved on January 19, 1998 when Diebold purchased IBM's share of the partnership for $16.1 million.
International growth (1998-2001)
In the 1990s the company significantly diversified its products, and by 1998 was offering "automated teller machines, electronic and physical security equipment, automated medication dispensing systems, software, supplies and integrated systems solutions." Under Diebold chairman and CEO Robert Mahoney, Diebold debuted an ATM in 1999 that identified customers using iris recognition, which was the first of its kind. Also that year, Diebold introduced the first talking ATM in the United States. In October 1999, Diebold acquired all the stock of Procomp Amazonia Industria Electronica, S.A, a manufacturer of retail and banking automation equipment such as ATMs based in Sao Paulo, Brazil.
The U.S. National Archives in Washington, D.C. hired Diebold in 2001 to secure documents such as the Charters of Freedom, The Constitution, The Bill of Rights, and the Declaration of Independence. In February 2002, Diebold announced it would acquire the financial self-service assets of the European companies Getronics NV and Groupe Bull for approximately USD $160 million. The agreement put Diebold near "$2 billion in revenue on an annualized basis." By the end of 2002, Diebold had 13,000 associates and serviced 88 countries. The company also continued to secure historical items such as the Hope Diamond at the Smithsonian Institution. Seeking to expand in India, at the end of 2002, Diebold announced a new production unit in Goa manufacturing ATMs in collaboration with Tata Infotec, and soon after announced a new corporate office in Mumbai. Revenue in 2003 was $2.1 billion for Diebold overall, with stock up 36% for the year.
Diebold Election Systems and UTC (2002-2009)
In 2002, Diebold entered the United States elections industry through the acquisition of Global Election Systems, a producer of touch-screen voting technology based in McKinney, Texas. Branded Diebold Election Systems (DES), the acquisition was their smallest business segment, and in late 2002, 3.7 million voters in Georgia used DES touch-screen stations. DES was soon the subject of controversy amid allegations surrounding the security and reliability of some of its products, as well as the political fundraising activities of Diebold’s then-CEO Walden O'Dell in 2003. Critics argued O'Dell had a political conflict of interest which could compromise the security of Diebold's ballots, which O'Dell denied. Shortly afterwards, Diebold forbade its top executives from making political donations. Citing personal reasons, O'Dell resigned in December 2005 after several consecutive quarters of poor performance, with his role taken by Tom Swidarski. In August 2007, DES rebranded itself as Premier Election Solutions, and two years later the division was sold to a competitor, Election Systems & Software.
Wired Magazine reported in 2007 that an editor using a Diebold IP address had removed negative information from the Diebold Wikipedia page, with the information later moved to a more appropriate location. Diebold was increasingly focusing on technology related to mobile banking as of 2008, incorporating mobile banking into many of its products. That year Diebold was selected to be the sole ATM provider at certain Beijing Olympics venues. In March 2008, United Technologies Corporation (UTC), 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. In October 2008, UTC announced it was breaking off acquisition talks after Diebold rejected the offer. The company had 17,000 workers worldwide by April 2009. In 2009 Bank Technology News ranked Diebold as No. 1 on its FINTECH 100 list of ATM providers.
New facilities and acquisitions (2010-2013)
After a lawsuit brought by the SEC alleging deceptive accounting between 2002 and 2007, several Diebold executives paid settlements in June 2010 to have the charges dropped, without admitting any liability. Other executives refused to settle. By 2011, Diebold was the largest manufacturer of ATMs in the United States. The company debuted a prototype of the first virtualized ATM that year, which was created jointly with VMware and used cloud technology. In 2011, Diebold was hired to implement "advanced security solutions" at the World Trade Center Transportation Hub. Also that year, SDM Magazine named Diebold its 2011 Systems Integrator of the Year. In 2012, Diebold debuted what it claims is the "world's first 4G LTE-enabled ATM concept," as well as "two-way concierge video services" to its ATMs. After acquiring around 4,400 ATMs from Toronto-Dominion Bank in 2012, in September 2012, Diebold acquired the Brazilian online banking company Gas Tecnologia, which protects around 70% of the internet banking transactions in Brazil. On October 25, 2012, the company announced it was suspending plans to build a new world headquarters in Green, Ohio, saying it was no longer economically feasible.
CEO and President Thomas Swidarski resigned in January 2013 after pressure from the board over poor financial performance. Henry D.G. Wallace, a former CFO for Ford, assumed oversight of Diebold until a new CEO could be selected. Andy W. Mattes, a former Hewlett-Packard and Siemens executive, was appointed Diebold's new president and CEO in June 2013. Diebold debuted new ATM models in 2013, and also "increased its cash dividend for the 60th consecutive year." In 2013, Diebold was charged with violating the Foreign Corrupt Practices Act, after international division leaders and Diebold agents were alleged to have provided "improper gifts" to officials overseas. The Justice Department agreed to drop the charges if Diebold complied with various terms, including 18 months of compliance monitoring and a $48 million settlement.
Recent years and Wincor Nixdorf merger (2014-2016)
Diebold announced that it was buying the Danish PIN pad maker Cryptera in June 2014. Under the agreement, Cryptera remained a separate business operating under Diebold, and also remained an "original equipment manufacturer of EPP devices for Diebold and other existing customers." In July 2014, Diebold introduced its ActivEdge card reader, which it claims "prevents all known forms of skimming [ATM crime]." Diebold's revenue in 2014 equaled US$3.05 billion, an increase from the year before. Operating income equaled $117.0 million, net income equaled $114.4 million, and assets totaled $2.34 billion. As of 2014, Diebold held the record for consecutive dividend increases in its stock value.
In March 2015, Diebold acquired the Canadian ATM software company Phoenix Interactive Design. Based in London, Ontario, Phoenix was known for working with clients such as TD Canada Trust and Fifth Third Bank. Diebold sold the North American aspects of its electronic security business to Securitas in October 2015. Based in Stockholm, Securitas purchased the assets for USD$350 million. On October 25, 2015, Diebold publicly debuted two new ATM concepts. The first model, Irving, allows customers to withdraw money with an iris scan instead of a card, while the second concept, titled Janus, was described by Fortune as "a dual-sided, self-service ATM that can serve two customers at the same time."
In June 2015, Diebold was reportedly in talks to acquire its German rival Wincor Nixdorf. with the new company to be named Diebold Nixdorf. On November 23, 2015, Diebold Incorporated and Wincor Nixdorf AG entered into a business combination agreement, with Diebold offering $1.8 billion in cash and shares to finance the merger. Combined, it was estimated that the two companies would control about 35 percent of the global ATM market. The combined company would have registered offices in North Canton, Ohio, and be operated from headquarters in North Canton and Wincor Nixdorf's facilities in Paderborn, Germany. Software development for the new company would take place in North America, with Diebold citing their Phoenix Interactive Design subdivision based in Ontario, Canada. Diebold announced it had satisfied the share tender condition to acquire Wincor Nixdorf on March 24, 2016. On August 15, 2016, it was announced that the merger had been completed, with Diebold Nixdorf beginning operations under the name Diebold Nixdorf on August 16.
Markets and services
Diebold markets its products and services in diverse industries, including the financial, commercial, and retail spheres. Diebold is split into four regional divisions including North America, Latin America, and the Asia Pacific. The Middle East, Europe, and Africa divisions operate as one segment.
Beyond designing and producing its own physical product lines, according to Bloomberg Diebold provides services involving "installation and ongoing maintenance of products, remote services, availability management, branch automation, and distribution channel consulting; and outsourced and managed services, such as remote monitoring, troubleshooting, transaction processing, currency management, maintenance services, and online communication services." The company also engages in project analysis for clients, as well as systems integration and architectural engineering.
Diebold is known for designing, manufacturing, and servicing numerous product lines related to security and automated service. By 1998, the company offered "automated teller machines, electronic and physical security equipment, automated medication dispensing systems, software, supplies and integrated systems solutions," among other products and services.
Safes and metal work
Over the years Diebold has developed a number of products involved with automated dispensation, for example automated teller machines, movie vending machines, airline ticket vending machines, and credit-card activated gas pumps. In 1965 Diebold began "offering pneumatic tube delivery systems to banks, hospitals, post offices, libraries, office buildings" and many other industrial facilities. In the mid-1990s Diebold created its MedSelect Systems division, which introduced an automated drug dispensing sysem in 1995.
Diebold has developed a number of physical and electronic security products, and in recent years has been contracted to protect the World Trade Center Transportation Hub, the Hope Diamond at the Smithsonian Institution, and the United States Constitution, among other notable artifacts and landmarks. The company no longer engages in specialized physical security projects, and has since sold its North America-based electronic security business in October 2015.
For ATM security, Diebold introduced its ActivEdge card reader in 2014, which it describes as "the industry's first complete anti-skimming card reader prevents all known forms of skimming – the most prevalent type of ATM crime – as well as other forms of ATM fraud."
Automated teller machines
Diebold branched into the emerging market for automated teller machines (ATMs) in the early 1970s, and has since debuted numerous ATM product lines. Diebold's Total Automatic Banking System 500 (TABS 500) product was revealed in 1972. Another early ATM created by Diebold was the Diebold 10xx, introduced in 1985 as part of the 10xx series. InterBold, the ATM sales and marketing arm of Diebold, introduced a number of ATMs in the early 1990s. In 1999, Diebold debuted an ATM that identified customers using iris recognition, which was the first of its kind. Diebold also introduced the first talking ATM in the United States that year, which was installed on October 1, 1999 in San Francisco’s City Hall.
On December 8, 2014, Diebold debuted the 3500 and 3700 ATM series, both of which handle cash recycling among other functions. On October 25, 2015, Diebold publicly debuted two new ATM concepts at the Las Vegas Money20/20 show. The first model Irving, which was undergoing testing by Citigroup at the time, allows customers to withdraw money with a iris scan, removing the need for a card. The second ATM concept, titled Janus, was described by Fortune as a "dual-sided, self-service ATM that can serve two customers at the same time," with videoconferencing also available for help with complex transactions.
The philanthropic arm of Diebold, Inc., The Diebold Foundation, has supported a number of non-profits, including local branches of Meals on Wheels, as well as the Group Plan Commission to support the redevelopment of Cleveland’s Public Square.
Awards and recognition
The following is an incomplete list of awards won by Diebold:
- 2007: CSAA Excellence Awards - Central Station of the Year
- 2009-2010: Frost & Sullivan - North American Commercial Monitoring Company of the Year
- 2008-2010: Frost & Sullivan - Global Physical Security Systems Integrator of the Year
- 2009: Bank Technology News - No. 1 on FINTECH 100 list of ATM providers
- 2010: International Quality & Productivity Center - Call Center Excellence Award
- 2011: CSAA Excellence Awards - Central Station of the Year
- 2011: Online Trust Alliance - Leadership Award for Excellence in Security Practices
- 2011: Frost & Sullivan - Super Platinum Award for Excellence in Manufacturing (Goa, India)
- 2011: SDM Magazine - Systems Integrator of the Year
- 2013: Security Sales and Integration Magazine - Integrated Installation of the Year
- 2015: Security Sales and Integration Magazine - Installer of the Year
- Companies listed on the New York Stock Exchange (D)
- List of companies of the United States by state
- List of S&P 400 companies
- Premier Election Solutions (formerly Diebold Election Systems)
- Economy of Ohio
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- "Carlyle to Buy De La Rue Unit for 360 Million Pounds". Bloomberg. June 16, 2008. Archived from the original on March 21, 2010. Retrieved 2016-07-12.
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Diebolds World HQ address.
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-  The San Francisco Examiner (via National Council on Disability Document Archive)
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- "Diebold CEO O'Dell resigns". Crain's Cleveland Business. December 12, 2005. Retrieved 2016-07-12.
- Byrne, John (December 12, 2005). "Diebold CEO resigns after reports of fraud litigation, internal woes". Raw Story. Retrieved 2016-07-12.
- Sposito, Sean (January 24, 2013). "Diebold CEO Pushed Out Amid Disappointing Results". American Banker. Retrieved 2016-07-12.
- "Diebold Election Systems to Become Premier Election Solutions". PR Newswire - Premier Election Solutions, Inc. August 16, 2007. Retrieved 2016-07-12.
- Barney Gimbel, Fortune writer-reporter (November 3, 2006). "Rage against the machine: Diebold struggles to bounce back from the controversy surrounding its voting machines (Fortune, 3. November 2006)". Money.cnn.com. Retrieved November 22, 2011.
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- "SEC, DOJ charge Diebold in foreign bribery case". USA Today. October 22, 2013. Retrieved 2016-07-12.
- Cho, Janet (June 25, 2014). "Diebold buying Cryptera, a Danish maker of PIN pads for ATMs and other self-checkout devices". Cleveland.com. Retrieved 2016-07-12.
- "Diebold Stops ATM Fraudsters In Their Tracks With World's Most Secure Anti-Skimming Card Reader". diebold.com. July 29, 2014. Retrieved 2016-07-12.
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- Cho, Janet (March 16, 2015). "Diebold acquires Phoenix Interactive Design, a Canadian ATM software company". Cleveland.com. Retrieved 2016-07-12.
- Cho, Janet (October 26, 2015). "Diebold selling its North American electronic security business to Securitas for $350 million". Cleveland.com. Retrieved 2016-07-12.
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- Huebner, Alexander (9 June 2015). "Diebold in talks to buy Wincor Nixdorf". Reuters. Retrieved 10 June 2015.
- "Diebold remains committed to area despite planned combination with Wincor Nixdorf". CantonRep.com. November 24, 2015. Retrieved 2016-07-12.
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- "Diebold Unveils Two Additional ATM Series To Expand New Self-Service Family". Diebold, Incorporated. December 8, 2014. Retrieved 2016-07-12.
- "Diebold Foundation Provides Support for Meals On Wheels". Meals on Wheels. 2014. Retrieved 2016-07-12.[permanent dead link]
- "Diebold Foundation Donates $100,000 to the Transformation of Cleveland's Public Square". Diebold.com. 26 May 2016. Retrieved 2016-07-12.
- "Awards & Recognition". diebold.com. Retrieved 2016-07-12.
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