This sleeping giant and applied tech stock is about to awaken into a global growth monster. The company’s products are interwoven into the fabric of everyday life so seamlessly that you probably don’t even notice them or know the company’s name. Yet you use its products at virtually every bank’s drive-thru or ATM. And this company just bought one of its biggest rivals, doubling its size and gaining a 40% share of the projected $74 billion dollar self-service kiosk market by 2020.

The Diebold Dynamic

Diebold (NYSE: DBD) is a leader in banking automation with the ATM as its core. Yet it has misfired over the past few quarters (see table), as its clients have backed out of some orders and the ATM market has grown stodgy and stale. Besides, who could blame banks for dragging their feet to expand these days, given all the regulations and the flat economy?

But during this slow period, Diebold has quietly evolved its products beyond self-directed banking into information management and other areas of the Internet, and is slowly continuing to automate banking.

I became interested in Diebold when I drove up to a different bank office than the one I usually use to make a deposit. Instead of the circa 1969 vacuum tube for swapping checks and receipts, and the asbestos-coated speaker that makes the teller sound like the teacher in the Peanuts cartoons, I was treated to the latest Diebold banking interface. It had high-resolution screens and a thoroughly modern intercom system that let me not only understand the teller but also see who she was and what she was doing as we spoke.

Upon further investigation, I discovered that Diebold does much more for banks than what you see. For example, it offers cash management software, online security and network management, as well as off-line security through security doors and metal detectors that can trap robbers inside a glass cage as they exit. Now, with the 2016 purchase of Germany’s Wincor Nixdorf, Europe’s largest self-service kiosk company, Diebold will double its sales and increase its global reach in banking and beyond.

The Wincor Win

The Nixdorf deal, which will cost $1.8 billion and is expected to close in the next six months, makes Diebold a global powerhouse. The combined company will be the number one ATM machine maker in the world, ahead of former number one NCR (27%). The merger will also increase Diebold’s European ATM market share to 70% from 15% and add retail kiosks to its product line.

Those retail kiosks will be key to Diebold’s growth. Global banking can still grow, but most of that growth is in high-risk emerging markets that take time to develop. But retailing is a different story. Here, convenience stores, small businesses, department and specialty stores, and gas stations are ripe for automation. That means adding self-checkout terminals, digital fuel pumps and automated car wash operations, for example. Wincor has a sizeable footprint in those products.

One of them is Wincor’s Beetle kiosk line. It’s placed in, say, a department store, and its touch screen lets customers see a bridal gift registry for the upcoming weddings they’re attending as well as pricing and even the location of those products in stores. Other kiosks allow self-service checkouts in grocery stores or buying and printing tickets at movie theaters.

The Automated Future

Making kiosks interactive and for more than one purpose is the future in this industry. ATMs will no longer just dispense cash.  Instead they can supply pre-paid cards, coordinate with mobile devices and advertise banking services customized to the ATM user’s needs.

If Diebold CEO Andy Mattes is correct, two big things will happen: ATMs will be replaced much more rapidly, in 24 to 36 months versus the traditional seven to 10 years, and revenue could potentially double. Why replace a perfectly good ATM? Because the new ATMs will also be vending machines for items such as lottery tickets, transit passes, or concert, movie and sporting event tickets.

A Bargain

Diebold is dirt cheap, selling at just over 9 times trailing earnings while paying a nifty 4% dividend. It’s been suffering some growing pains, but gross income and revenue in the most recent quarter are rebounding. Plus, it’s cash rich. Cash flow is improving and its balance sheet has $2.15 billion in cash, $4 billion in assets and just $3.4 billion in total liabilities, so it can afford more acquisitions.

What Could Go Wrong?

Diebold seems to have seen its worst days, and its acquisition of Wincor is full of potential. But I have two major questions: Will the merger go smoothly and will the combined business deliver on its growth potential? While I judge both risks to be moderate, they are dwarfed by the upside potential. Buy Diebold up to $29.