NCR Corporation and Radiant Systems announced an
agreement for NCR to acquire Radiant Systems, a provider of multichannel
point-of-sale and managed hosted service solutions to the hospitality and
specialty retail markets, through a cash tender offer of $28.00 per Radiant
Systems share.
The equity purchase price of $1.2 billion has been
approved by the boards of directors of each company. NCR and Radiant
Systems currently anticipate the transaction will close during the third
quarter of 2011, subject to regulatory approval.
The transaction accelerates NCR‘s
strategy of expanding into core industry adjacencies, increasing revenue growth
rates and expanding margins by enhancing its mix of software and services.
Radiant Systems’ software and Software as a Service
(SaaS) capabilities will significantly enhance NCR’s solutions, creating a
superior portfolio of multichannel point-of-service and self-service solutions.
NCR will use its global sales, services and operations organizations to extend this
portfolio to many of the fastest-growing markets in the world, while driving
supply chain, operational and innovation synergies. Market coverage will be
enhanced by Radiant Systems’ strong channel partner network, which will
complement NCR’s channel and support its goal of building a world-class channel
partner network.
With the addition of Radiant Systems,
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. The hospitality and specialty retail total
addressable markets are approximately $8 billion in size and under-penetrated
by industry leaders.
NCR plans to leverage Radiant Systems’ leadership
position in quick service and table service restaurants, specialty and
convenience retailers and entertainment venues by combining Radiant Systems’
solution and services portfolio with NCR’s existing portfolio, brand and global
reach. The transaction is expected to be accretive to NCR’s Non-GAAP earnings
in 2012.
Radiant Systems is a logical and strategic extension for
NCR, moving us into attractive fast-growth adjacent markets,” said Bill Nuti,
chairman and CEO of NCR.
Radiant Systems has delivered 15 percent compounded
annual revenue growth over the last five years, along with impressive margin
expansion as a result of the high customer demand for its expansive software
offerings. This acquisition will enable our companies to accelerate expansion
through the powerful combination of each other’s strengths and NCR’s track
record of driving transformational change. We will bring together two strong
teams with Radiant Systems playing a vital role in enhancing our long-term
growth, margin expansion and earnings appreciation,” Nuti added.
Radiant Systems’ growth strategy has always focused on
taking great care of our customers, delivering leading innovation to our
industries and continuing to expand our market presence across our industries
and around the globe,” said John Heyman, CEO Radiant Systems.
The acquisition will be financed through a combination of
new debt and existing balance sheet cash. NCR will raise approximately $1.1
billion of new funded debt to finance the transaction. The financing will
enable NCR to maintain a strong liquidity position post transaction. J.P.
Morgan, RBC Capital Markets, BofA Merrill Lynch and Morgan Stanley provided
committed financing to NCR for the transaction.
By TelecomLead.com Team
[email protected]
