ATM maker Diebold is offering to take over Wincor Nixdorf of Germany in a deal that would value the German company at more than 1.7 billion euros ($1.9 billion).
The companies said Saturday that they entered a non-binding term sheet agreement on "the key parameters of a potential strategic business combination." They said that Diebold is offering 52.50 euros per Wincor Nixdorf share — substantially above the stock's closing price on Friday of 38.90 euros.
Read MoreATM, overdraft fees surge to record high
The acquisition would be paid for in cash and Diebold shares, said Diebold, which is based in North Canton, Ohio. It added that due diligence still has to be completed by both sides, and "there can be no assurance that any binding agreement will be reached at the above mentioned terms, or at all."