NCR buys JetPay for $184 million as upstarts threaten point-of-sale business
NCR, a large point-of-sale terminal maker, said it will acquire payment processor JetPay in a move that highlights competition from the likes of Stripe and Square as well as PayPal and its Venmo as credit card processors for businesses.
JetPay also offers payroll and human capital management software.
NCR said it will pay $5.05 a share for JetPay, or $184 million.
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For NCR, the move is part of a broader strategy to develop recurring revenue and offering software and services. NCR said it plans to integrate JetPay's cloud-based payments platform into its enterprise point-of-sale (POS) terminals for retail and hospitality.
JetPay reported second quarter revenue of $15.2 million with net income of $1.51 million excluding accretion of convertible preferred stock. For the six months ended June 30, revenue was $31.1 million. Payment services account for the bulk of JetPay's revenue.
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