NCR to buy Retalix for about $650m; gains software, services in retail

NCR to buy Retalix for about $650m; gains software, services in retail

Summary: NCR will acquire Retalix for around $650 million, or $30 a share -- a hike from the firm's Wednesday closing price. The acquisition is a perfect fit for the two companies.

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Credit: NCR

ATM machine maker and payment systems firm NCR Corp. has agreed to buy Retalix for about $650 million, gaining software and services for retail use.

Investors for Israel-based Retalix, which makes software for more than 70,000 retail locations in more than 50 countries with more than 400,000 customer touch points, will receive $30 a share in cash, NCR said in a statement, a 37 percent hike on Retalix's closing price of $21.90 a share on Wednesday.

The agreement states that Retalix will merge with a subsidiary of NCR, and the deal will be financed through a mix of cash and debt.

The software maker will ultimately help NCR develop more tools and services to corporate customers in finance, travel and hospitality. Retalix develops point-of-sale solutions to small-to-medium sized businesses, such as gas stations, convenience stores, all the way up to supermarkets and department stores. 

Crucially for NCR, the firm expects to use Retalix's software to help speed up the growth of its enterprise software platform, by creating new software modules that can be used across the retail industry and leveraged across a wide range of different industries. 

In a nutshell, it's a perfect fit for the two companies. The deal is expected to close in the first quarter of 2013. 

"Retalix is a strong, strategic fit for NCR and the combination of our two companies will drive significant value for both our shareholders and customers," said NCR chairman and chief executive Bill Nuti in prepared remarks.

Also commenting, Retalix chief executive Shuky Sheffer said: "Together, we will create a talent pool and solutions portfolio that will be richer than anything available before, enabling our customers to deliver a superior omni-channel shopping experience."

Last year, NCR agreed to buy Radiant Systems, a maker of customer-service sales hardware and software, adding services to food outlets and entertainment units.

Topics: Software, Tech Industry

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