In case those Black Friday and Cyber Monday frenzies weren’t enough, here’s another big reminder of what a massive industry (and opportunity) retail technology is.
Global payment and retail technology giant NCR Corporation announced this afternoon that it will acquire Retalix, a provider of point-of-sale software and services, for $30 per share in cash, a total transaction value of approximately $650 million.
This announcement confirms rumors that had been flying around for several hours — although the actual purchase value was a bit below the rumored $800 million cash deal that was first reported this morning.
Retalix, which is based in Israel with a U.S. subsidiary in Plano, Texas, has been listed on the NASDAQ stock exchange under the ticker RTLX since 1998. The company’s software and services are deployed in more than 70,000 retail locations in more than 50 countries. Its stock price surged on the deal rumors today, from an opening price of $22.19 per share to a closing price of $29.11. NCR issued its confirmation of the deal just after market close.
NCR, meanwhile, is based in Duluth, Georgia, and has a market cap of $3.8 billion. In a statement, the company said that this will build upon the business NCR has built from its $1.2 billion mid-2011 acquisition of point-of-sale software provider Radiant Systems. Here’s a quote from NCR CEO Bill Nuti:
“Retalix is a strong, strategic fit for NCR and the combination of our two companies will drive significant value for both our shareholders and customers. Retalix’s market-leading software and services capabilities will enhance NCR’s retail solutions, creating a world-class portfolio of offerings. That innovation plus the addition of exceptional talent to our team positions NCR as the global leader in retail innovation.”
The deal is expected to close in the first quarter of 2013. J.P. Morgan acted as exclusive financial advisor to NCR on the transaction, while Jefferies & Co. acted as financial advisor to Retalix.