Giesecke & Devrient and Wincor Nixdorf to Cooperate in Automating Worldwide Cash Cycles Technology companies Giesecke & Devrient (G&D) and Wincor Nixdorf will pool their expertise to automate the cash cycle – from consumers via banks, retailers and cash-in-transit companies through to central banks – and will be cooperating more closely to standardize systems and processes, thus making for efficient cash processing. In addition to pooling their technological expertise, the two partners will be combining their extensive know-how from their respective customer segments and market access channels. The partnership will include the establishment of a joint venture – CI Tech Components AG – which will develop and market security technology for authenticating and processing banknotes. Every year, 300 billion US dollars is spent on cash processing worldwide – 12 billion euros of it in Germany alone. What is more, since the introduction of the euro, the number of banknotes in circulation in the euro member countries has continued to increase – by an annual rate of eight percent. This is why central bank representatives have long advocated the streamlining of cash logistics to make them as efficient as possible. This requires innovative ideas and the development of new technologies, but also for the increasing delegation of the central banks' cash processing tasks to banks, cash-in-transit companies and retail companies. During the press conference held today in Frankfurt, Dr. Karsten Ottenberg, Chairman of the Management Board and CEO of Giesecke & Devrient, and Eckard Heidloff, President and CEO of Wincor Nixdorf, emphasized the potential offered by collaboration between their companies. By working together, the G&D and Wincor Nixdorf will be able to create solutions that will radically reduce the cost of cash management – both for individual companies and whole national economies. A further advantage is that the risks inherent in cash processing will be minimized for all the participants in the cash cycle. The goal of the partnership between G&D and Wincor Nixdorf is to develop solutions for precisely these requirements. Banks and retailers already have access to a reliable, audit-proof and fully automated solution for organizing their local cash cycles. Going by the name of CINEO, this new-generation system from Wincor Nixdorf was specifically developed for banks and retailers and is equipped with innovative intelligent cash cassettes. G&D has integrated these cassettes in a processing system for cash centers. The advantage of the new system is that, for the first time ever, cash center staff do not need to open the cassettes delivered by banks and retailers, and manually count and re-sort the cash they contain. "This partnership is another milestone in the ongoing reorganization of cash cycles, using the new technology that we launched a year ago," said Eckard Heidloff, President and CEO of Wincor Nixdorf AG. Starting late March 2011, G&D and Wincor Nixdorf will be setting up a joint venture – CI Tech Components AG – to pool their activities for the development, manufacture and marketing of security technologies for authenticating and processing banknotes. CI Tech Components AG will be headquartered in Burgdorf, Switzerland, and – subject to approval by the antitrust authorities – will commence operations in March 2011. Initially, around 160 employees are to work for the joint venture at its headquarters in Burgdorf as well as in Munich. Through the new company, G&D and Wincor Nixdorf intend to substantially expand their current combined market share of around ten percent in the growing market for banknote authentication sensors and modules in the coming years. According to estimates of the two companies, this market, which is currently worth 650 million US dollars, is set to reach about one billion US dollars by 2015. CI Tech Components' sensors and modules will also be marketed to other providers of self-service systems, e.g. the kiosk systems of banks, retailers and postal services, or railroad companies' ticket machines. "All our solutions as well as the individual hardware and software components will be developed on the basis of open standards. We are also interested in persuading other strong market players to join us in the ongoing development of the technology platform and in worldwide marketing," says Dr. Karsten Ottenberg, Chairman of the Management Board and CEO of Giesecke & Devrient. The two companies' next concrete goal is to integrate Giesecke & Devrient's cash center management software and Wincor Nixdorf's software platform for managing cash processes at banks and retail companies. This will help to dovetail the two partners' existing complementary solutions so that the software reflects the cash processes all the way from branch or store right through to central banks' cash centers. Giesecke & Devrient's banknote processing systems are the technology of choice when the very highest levels of security, reliability and speed are required. G&D provides its systems to some 150 central banks around the world as well as to a large number of cash center operators. The company also offers end-to-end expertise along the entire banknote life cycle – from the development of security features, the production of banknote paper and the printing of banknotes through to automated banknote processing and, ultimately, banknote destruction. Wincor Nixdorf is a business partner to 21 of the world's 25 largest commercial banks. Last year, the company launched a new technology platform for the management and almost full automation of local cash cycles between banks and retail enterprises.