Diebold has inked an agreement to buy Cryptera to boost its position in automated teller machine (ATM) security solutions and drive future innovation and excellence in the encrypting PIN pad (EPP) technology arena.

Established in 1985, Cryptera is engaged in research and development of secure payment technologies, mainly in the field of EPP technology.

Following completion of the transaction, Cryptera will trade as a separate entity with its own business plans and scope, and will continue to be an original equipment manufacturer (OEM) of EPP solutions for Diebold and its other existing clients.

Diebold plans to use Cryptera’s development and product capabilities to expand its OEM customer base in the self-service industry.

All 80 Cryptera employs will be absorbed by Diebold family as part of the acquisition. Cryptera president and CEO Kaj Christiansenwill remain with the company along with his existing management team.

Commenting on the transaction, Diebold president and CEO Andy Mattes said, “Cryptera’s people, knowledge and market presence will allow Diebold to better leverage our combined technical capability and further advance the level of innovation for security in self-service settings across the globe.”

Both firms did not reveal the financial terms of the acquisition; however, they expect to close the deal early in the third quarter.