After years of struggling with its electronic voting division, Diebold has finally divested the segment by selling it to Election Systems & Software, Inc. for approximately $5 million. This move marks the end of a tumultuous chapter for the company, which has faced ongoing challenges and negative publicity surrounding its voting technology.

The company anticipates recording a pre-tax loss ranging from $45 million to $55 million on the sale, reflecting the difficulties and investments made in the failing business. Despite this significant write-down, many see it as a necessary step to dissociate the Diebold brand from the security issues and reputation damage linked to its e-voting solutions.

Diebold had been attempting to offload its voting division for more than two years. In an effort to improve public perception, the company rebranded the unit as Premier Election Solutions in August 2007, aiming to distance itself from the negative press. However, the rebranding did little to change perceptions, and the business continued to be recognized as part of Diebold.

Meanwhile, the company's core operations remain focused on automated teller machines and security technology. Notably, e-voting machines contributed only a small fraction—about 2.8%—to Diebold's total revenue in 2008, underscoring the limited role of this segment within its overall business portfolio.

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