As announced on Dec 2, 2013 NCR Corp. (NCR) completed the acquisition of Digital Insight Corp. for $1.65 billion. Digital Insight is a provider of online and banking solutions. The company’s solutions complement NCR’s existing business and enhance its capabilities. The acquisition is expected to be accretive to NCR’s 2014 earnings.
The acquisition will enable NCR to provide a unique customer experience across mobile, bill pay and online banking channels in addition to the ATM service it already provides. It will also significantly expand its existing client base. The acquisition will also help NCR customers to access account balances, payments via mobile banking apps for Apple (AAPL) iOS and Android devices.
Apart from this, NCR recently also closed the acquisition of Alaric Systems Ltd, a provider of fraud prevention solutions, for a purchase price of $84.0 million. The merger of Alaric Systems Ltd will help to reduce complexities in managing ATM, point of sale, e-commerce and mobile payment or banking transactions.
The recent acquisitions have helped NCR enter different business segments and improve its financial services segment growth trajectory. NCR has also strengthened its position in the point of sale (POS) market through the acquisition of Radiant Systems. It also strengthened its hardware-enabled, software-driven business model through the acquisition of Retalix, which helped it to offer advanced solutions to enhance customer satisfaction.
NCR Corporation is a global technology company and a world leader in consumer transaction technologies. However, softness in its ATM business in the mature markets, competition from Diebold Corp. (DBD) and IBM Corp. (IBM), European exposure and a high debt burden are concerns.
NCR Corp. has a Zacks Rank #2 (Buy).
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