NCR Corp. (NCR) agreed to buy Retalix Ltd. (RTLX) for $650
million, a person familiar with the matter said, as the maker of
ATM machines and cash registers moves to get more deeply into
software and the retail industry.
The proposed takeover of the Israeli concern, expected to be
announced after the market closes Wednesday, will be NCR's second
software-industry acquisition in less than two years. In August
2011, NCR completed its purchase of Radiant Systems Inc.
Retalix serves the retail industry, with customers such as
Tesco, Target, Publix and Sainsbury, this person said. It sells
software and services that help retailers manage sales, stores and
logistics.
The $30-a-share cash offer won't require NCR to borrow money,
the person familiar with the matter said. Both companies halted
trading in their shares ahead of the announcement Wednesday after
news of the takeover bid leaked to the Israeli press.
A $650 million deal prices Retalix at "a pretty nice premium,
for a company that sells to convenience stores and grocery stores,"
said Gil Luria, an analyst covering NCR for Wedbush Securities.
"But the strategic fit is good for NCR, since they already sell to
those customers, and this would increase their mix of software and
services."
Retalix is headquartered in Ra'anana, Israel. Like many
companies, NCR has the bulk of its cash overseas, where it can be
spent without paying U.S. taxes.
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