DULUTH, Ga. (AP) — Technology company NCR Corp. said Monday that it has agreed to buy Radiant Systems Inc., a company that makes hardware and software systems used to manage restaurants and hotels, for $1.2 billion in cash.
NCR will make a cash tender offer of $28 for every share of Radiant Systems. At that price, the tender offer represents a 28 percent premium over the Friday's closing price of Radiant System's stock at $21.95.
Shares of Radiant Systems, based in Alpharetta, Ga., gained $6.52, or 30.4 percent, to $27.97 in aftermarket trading, after slipping 50 cents, or 2.3 percent, to $21.45 during the regular session before the purchase agreement was announced.
NCR, a maker of cash registers, automated teller machines and other technological devices, saw its stock add 41 cents, or 2.2 percent, to $19.50 in aftermarket trading. The shares fell 36 cents to $19.09 earlier.
The Radiant Systems acquisition is part of NCR's strategy to broaden its mix of software and services. The acquisition will give Duluth, Ga.-based NCR a foothold into the $8 billion hospitality and specialty retail markets.
"Radiant Systems is a logical and strategic extension for NCR, moving us into attractive fast-growth adjacent markets," said NCR Chairman and CEO Bill Nuti in a joint statement.
NCR makes Blockbuster Inc.'s self-service DVD kiosks, and self-service stations for the retail, financial services, travel, health care, hospitality, entertainment and gaming industries.
It also sells technology that allows customers in retail locations to check out without the assistance of a cashier.
NCR said it plans to take advantage of Radiant Systems' established position in quick-service and table-service restaurants, specialty and convenience retailers and entertainment venues by combining Radiant's offerings with its own.
The company estimates that the deal will accelerate its revenue growth and contribute to earnings next year.
NCR said it will create a hospitality and specialty retail market segment to be led by Radiant Systems Chief Operating Officer Andrew Heyman.
It said it will raise about $1.1 billion of new funded debt to finance the transaction.
The tender offer is expected to begin on July 25 and the acquisition is expected to close in the third quarter.