* Deal represents 37 percent premium
* NCR expects the deal to add to 2013 non-GAAP earnings
* NCR to fund the deal through cash and debt
Nov 28 ATM maker NCR Corp said it would
buy Israeli software company Retalix Ltd for $650
million in a bid to expand its footprint in the retail sector.
Retalix shareholders will get $30 per share, or a near 37
percent premium to the stock's closing price of $21.90 Tuesday
on the Nasdaq.
Reports of a deal earlier in the day on Wednesday pushed
Retalix shares up nearly 35 percent to $29.50.
NCR, which has a market value of $3.83 billion, said it
plans to finance the deal through a combination of cash and
debt, and expects the deal to add to its 2013 non-GAAP earnings.
NCR said it expects pre-tax cost synergies of about $5
million to $10 million in 2013, and about $20 million to $25
million over three years.
The company said it would incur a one-time cost of about $30
million to achieve the synergies.
Retalix provides software and services to retailers,
including supermarkets, convenience stores, fuel stations,
drugstores and department stores.
Its products support point-of-sale, sales channels and
in-store management, customer management and marketing,
merchandising, and logistics.
Retalix's strength with blue-chip retailers will be highly
complementary to NCR and will enable additional sales
opportunities across the combined installed base, NCR said in a
J.P. Morgan and Jefferies & Co advised the companies on the
NCR shares closed at $23.75 on Wednesday on the New York