ATM and retail self-service kiosk-maker NCR Corp. (NYSE:NCR) announced plans Monday to acquire hospitality and retail software-maker Radiant Systems Inc. (NASDAQ:RADS) in a cash tender offer of $28 per share, which represents a 31% premium to Radiants last closing price.
NCR plans to raise $1.1 billion in new debt, and also use its existing cash on the balance sheet to fund the acquisition. JPMorgan (NYSE:JPM), RBC Capital Markets, BofA Merrill Lynch (NYSE:BAC) and Morgan Stanley (NYSE:MS) have all agreed to help finance the deal.
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In a statement released Monday after the market closed, NCR Chairman and CEO Bill Nuti highlighted Radiants ability to take the company into fast-growth adjacent markets.
"Radiant Systems has delivered 15% compounded annual revenue growth over the last five years, along with impressive margin expansion as a result of the high customer demand for its expansive software offerings, said Nuti, in a release. This acquisition will enable our companies to accelerate expansion through the powerful combination of each other's strengths and NCR's track record of driving transformational change.
The deal has been approved by both companys boards and is expected to close in the third quarter of 2011. NCR expects the acquisition to improve the companys adjusted earnings in 2012.
Shares of Radiant Systems soared 30% or $6.45 a share on news of the acquisition.
Shares of NCR Corp. rose 2.w% in after-hours trading, after falling 36 cents, or 1.9%, to close Mondays session at $19.09.