Tags: NCR | Software | Maker | Retalix

NCR to Buy Software Maker Retalix at Hefty Premium

Wednesday, 28 Nov 2012 05:24 PM

NCR Corp., a supplier of automated-teller machines and payment systems, has agreed to buy Retalix Ltd. for about $650 million, gaining software and services used in supermarkets.

Retalix investors will receive $30 a share in cash, Duluth, Georgia-based NCR said Wednesday in a statement. Retalix shares soared 35 percent on Nasdaq, closing at $29.50. The transaction will be financed through a combination of cash and debt, and is expected to close in the first quarter of 2013.

Software from Retalix, used in more than 70,000 retail locations in more than 50 countries, will help the U.S. company expand the tools it offers corporate customers in industries such as finance, travel and hospitality, NCR said. It will also provide a mix of higher-margin software and services that can help NCR diversify beyond its roots in hardware.

“It seems like a good strategic fit, this adding of a higher-margin software business,” Gil Luria, an analyst at Wedbush Securities Inc., said in an interview. “It makes strategic sense, but they pay dearly for it.”

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NCR Corp., a supplier of automated-teller machines and payment systems, has agreed to buy Retalix Ltd. for about $650 million, gaining software and services used in supermarkets.
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2012-24-28
Wednesday, 28 Nov 2012 05:24 PM
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