NCR Corporation has agreed to acquire Radiant Systems, a provider of multichannel point-of-sale and managed hosted service offerings to the hospitality and specialty retail markets, for $1.2bn.
The transaction is expected to accelerate NCR’s strategy of expanding into core industry adjacencies, increasing revenue growth rates and expanding margins by enhancing its mix of software and services.
NCR will leverage Radiant Systems’ software and Software as a Service (SaaS) capabilities to create a portfolio of multichannel point-of-service and self-service offerings.
Radiant Systems channel partner network is expected to complement NCR’s channel and support its goal of building a world-class channel partner network, while driving supply chain, operational and innovation synergies.
With this acquisition, NCR will create a third core industry vertical, after its financial and retail lines of business, and establish category leadership in the hospitality and specialty retail markets.
NCR chairman and CEO Bill Nuti said this acquisition will enable their companies to accelerate expansion through the powerful combination of each other’s strengths and NCR’s track record of driving transformational change.
Radiant Systems CEO John Heyman said, "NCR’s global footprint, brand recognition and track record of innovation will help them achieve their strategic aspirations and create even more value for their customers."
NCR will raise approximately $1.1bn of new funded debt to finance the transaction, along with existing balance sheet cash.
The transaction is expected to be accretive to NCR’s non-GAAP earnings in 2012, which excludes amortisation of acquired intangibles and one-time costs.
NCR and Radiant Systems currently anticipate that the transaction will close during the third quarter of 2011.
