The Software as a Service (SaaS) capabilities of Georgia-based Radiant Systems’ will significantly enhance NCR’s solutions, forming a portfolio of multichannel point-of-service and self-service solutions.
With the addition of Radiant Systems, NCR said it 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.
NCR said the transaction will be funded through a combination of new debt and existing balance sheet cash. It will raise approximately $1.1bn of new funded debt to finance the transaction.
Radiant Systems’ chief operating officer Andrew Heyman will lead the hospitality and specialty retail lines in the combined company.
NCR chairman and CEO Bill Nuti said this acquisition will enable both the companies to accelerate expansion through the powerful combination of each other’s strengths and NCR’s track record of driving transformational change.
NCR claims that JP Morgan, RBC Capital Markets, BofA Merrill Lynch and Morgan Stanley provided committed financing to NCR for the transaction.
The transaction is expected to be accretive to NCR’s Non-GAAP earnings in 2012. It is subject to regulatory approval and is expected to close during the third quarter of 2011.
