NCR Makes 'Transformative' Financial Services Acquisitions
"Executing deliberate, thoughtful strategic agenda to profoundly reinvent company"
DULUTH, Ga. -- NCR Corp., a global leader in consumer transaction technologies, took the next step in the transformation of its Financial Services business, announcing that it had entered into a definitive agreement to purchase Digital Insight Corp., a leader in online and mobile banking solutions, for a purchase price of $1.65 billion, and that it has completed the acquisition of Alaric Systems Ltd., a provider of secure transaction switching and fraud-prevention software, for a purchase price of approximately $84 million.
Together, these companies complement and extend NCR's existing capabilities in the banking industry to form a complete enterprise software platform that will deliver a consumer experience across all digital and physical channels--mobile, online, branch and ATM. The combination will help retail banks and other financial institutions reduce legacy costs and enable solutions for new, more nimble branches by providing one platform for omni-channel services and all payment and transaction types.
The current announcement follows the acquisitions of Retalix and Radiant Systems that have transformed NCR's Retail and Hospitality businesses by delivering revenue growth, improved profitability and an increased revenue mix of software and software-as-a-service (SaaS) for NCR. The acquisitions of Digital Insight and Alaric Systems continue a strategic plan of transformative acquisitions across all of the company's three core lines of business and will enhance NCR's existing capabilities, delivering a comprehensive suite of retail banking solutions.
"This is a historic day for NCR," said NCR chairman and CEO, Bill Nuti. "For the past eight years, NCR has been executing a deliberate and thoughtful strategic agenda to profoundly reinvent the company. Over that time, we have orchestrated a patient balance between legacy issues and growth initiatives that has led to delivering a compelling value proposition for all of our stakeholders. Today represents a culmination of many years of effort, particularly as it relates to what was once NCR's core businesses. Today, we are fundamentally and permanently changing our largest line of business, Financial Services. With the announcements of our agreement to purchase Digital Insight and our acquisition of Alaric Systems, NCR becomes a powerful, global 'FinTech' solutions provider enabling retail banks to deliver on the promise of omni-channel capabilities--on top of an unparalleled, innovative software platform."