NCR Corp, yesterday said that it will acquire Radiant Systems, a provider of hardware and software to the hospitality and retail industries, for $1.2 billion in cash in order to expand into the restaurant and entertainment businesses.
Founded in 1985 and based in Alpharetta, Georgia, Radiant Systems is a high-tech company that provides store technology for the hospitality, petroleum and convenience store, entertainment and retail industries primarily in Africa, Asia, Australia, Europe, Latin America, the Middle East, North America, and South America.
With more than 100,000 installations worldwide through its offices in Dallas, Memphis, Los Angeles, Prague, Singapore, Melbourne, and London, Radiant reported 2010 net income of $ 21.8 million on revenues of $346.4 million.
Under the terms of the deal that has been approved by the boards of directors of both companies, NCR will pay $28 a share in a tender offer for Radiant's shares that will begin by July 25 and run for at least 20 business days. The bid represents a premium of 30 per cent to Radiant's closing price on 11 July 2011.
The proposed acquisition will accelerates NCR's strategy of expanding into the restaurant and entertainment business mix of software and services, which are approximately $8 billion in size and under-penetrated by industry leaders. Radiant's market-leading software will significantly enhance NCR's solutions, creating a superior portfolio of multichannel point-of–service and self-service solutions.
NCR said that it will use its global sales, services and operations along with Radiants' strong global network to extend this portfolio to many of the fastest-growing markets in the world