ATM maker NCR Corp. is buying hospitality software developer Radiant Systems Inc. for $1.2 billion.
The Duluth, Ga., vendor said June 11 after market close that the acquisition, for which it plans to raise $1.1 billion in new-funded debt, would help it add a third "industry vertical" to sell products along side its financial services and retail segments.
"Radiant Systems is a logical and strategic extension for NCR, moving us into attractive fast-growth adjacent markets," Bill Nuti, NCR chairman and chief executive, said in a press release. He added that the acquisition, which is expected to close in the third quarter, "will enable our companies to accelerate expansion through the powerful combination of each other’s strengths."
NCR said its cash tender offer, valued at $28 per Radiant share, will commence on or before July 25 and be open for at least 20 business days. The deal depends on at least 50% of Radiant shareholders accepting the offer and regulatory approval.
NCR said it plans to build on Radiant's strong position selling point of sale software for quick-service and "table service" restaurants as well as specialty retailers and entertainment venues, using NCR's existing product portfolio, brand and "global reach."
Radiant's shares surged as much as 30.3% in after hours trading to $27.95 after closing down 2.3% for the day at $21.45.
NCR's shares had closed down 1.9% at $19.09 and moved little after reporting the acquisition.
