July 11 (Bloomberg) -- NCR Corp. agreed to acquire Radiant Systems Inc., a maker of customer-service sales equipment and software, for $1.2 billion.
The $28-a-share purchase has been approved by both companies’ boards, according to a statement NCR released today. The price represents a 31 percent premium to Alpharetta, Georgia-based Radiant’s closing price today of $21.45.
NCR plans to combine its portfolio of automated checkout products with Radiant’s business serving fast-food and table-service restaurants, specialty and convenience retailers and entertainment venues, according to the statement. NCR has been seeking to expand into areas similar to its main product line, including ATM machines and self-check-in airport kiosks.
NCR, based in Duluth, Georgia, will raise $1.1 billion in new debt to finance the purchase, which is expected to close by Sept. 30. Radiant Systems Chief Operating Officer Andrew Heyman will run the new NCR unit, the company said.
Radiant Systems surged to $28 in extended trading after it closed down 50 cents at $21.45 earlier on the Nasdaq Stock Market. NCR added 2.1 percent to $19.50 in extended trading after earlier falling 36 cents to $19.09 in New York Stock Exchange composite trading.
NCR also builds kiosks that allow customers to rent and drop off movies in grocery stores and other outlets. It is disputing Dish Network Corp.’s assertion that its contract to license the Blockbuster Inc. name on those kiosks is invalid following the satellite TV provider’s acquisition of bankrupt Blockbuster’s assets in April.
NCR had paid Blockbuster for the use of its brand and collects all revenue from rentals. NCR says the Blockbuster Express name, design and related trademarks are held by a trust that wasn’t part of Blockbuster’s bankruptcy filing.
If Dish successfully voids the contract, the Englewood, Colorado-based company will decide whether it wants to own the kiosk business, renegotiate deal terms with NCR or find another company that makes kiosks to license the name.
To contact the reporter on this story: Cliff Edwards in San Francisco at email@example.com
To contact the editor responsible for this story: Anthony Palazzo in Los Angeles at firstname.lastname@example.org