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NCR

stock cratered on Friday after the company announced it would split itself in two rather than sell itself, as had been expected by Wall Street.

NCR

(ticker: NCR) is a leading provider of ATMs and point-of-sale systems. The company’s split will divide those businesses, with one company focusing on digital commerce, and the other on ATMs. The move will unlock value for shareholders by allowing each independent company to execute its own growth strategies, the company said.

Over the course of the year, reports have circulated that the company had drawn interest from several potential bidders. In July, reports said the company was said to be in exclusive talks to be acquired by private-equity firm Veritas Capital after launching a review of strategic alternatives.

“Throughout the strategic review process, we received material interest in a whole company sale of NCR, as well as interest in various individual segments of our business,” said Frank Martire, executive chairman of NCR’s board. “In recent days, it has become increasingly clear to the Board that, given the state of current financing markets, we cannot deliver a whole company transaction that reflects an appropriate and acceptable value for NCR to our shareholders.”

The separation is targeted for the end of 2023 in a tax-free manner, the company said.

Investors seemed unconvinced by the spinoff strategy. The stock dropped 17% in premarket trading, poised to deepen the stock’s 27% annual loss.

Write to Sabrina Escobar at [email protected]