NCR to Buy Digital Insight for $1.65 Billion for Web Banking
NCR Corp. (NCR), the 129-year-old maker of cash registers and other payment-processing systems, agreed to acquire Digital Insight Corp. for $1.65 billion to gain software for online and mobile banking.
The purchase of Digital Insight, controlled by private-equity firm Thoma Bravo LLC, is expected to be completed in the first quarter of next year, NCR said today in a statement. The transaction will boost adjusted 2014 profit, the company said.
NCR is broadening its technology as customers seek new options for commerce via mobile phones and other devices. Along with the $84 million purchase of Alaric Systems Ltd., a deal that closed today, the Digital Insight acquisition will expand the software NCR offers banks, providing tools that span the Web, mobile devices, ATMs and local branches, the company said.
Thoma Bravo purchased Digital Insight for $1.03 billion from software maker Intuit Inc. (INTU) on Aug. 1. Intuit, which makes the TurboTax and QuickBooks finance programs, had itself bought Digital Insight for $1.22 billion in 2007.
The shares of Duluth, Georgia-based NCR dropped 2.2 percent to $34.19 at the close in New York, before the transaction was disclosed. They have climbed 34 percent this year.
Moody’s Investors Service placed NCR’s ratings on review for a possible downgrade following the announcement of the acquisition, citing a strain on the company’s credit profile. Moody’s said in a statement that it currently has a long-term rating of Ba2, two levels below investment grade, on NCR.
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