Radiant Acquires Synchronics
Combination will create tightly integrated service offering
ATLANTA -- Radiant Systems Inc. said it has entered into a definitive purchase agreement to acquire Synchronics Inc, a provider of business management and point-of-sale (POS) software for the retail market.
Under the terms of the deal, Radiant will acquire substantially all of Synchronics' assets for approximately $27.5 million. The purchase price consists of approximately $20 million in cash and $7.5 million in shares of restricted Radiant common stock. Radiant expects the acquisition to be accretive to 2006 earnings as adjusted to exclude amortization [image-nocss] of intangible assets. The acquisition is subject to customary closing conditions and is expected to close early in first-quarter 2006.
John Heyman, CEO of Radiant Systems, said, This acquisition extends our reach into the retail industry and is an important step in our long-term growth strategy. There are over one million retailers across the globe primarily comprised of local and regional operators. Successful operation of these businesses requires advanced technology that is easy to use and highly reliable. When we evaluated potential companies to serve as our retail platform, Synchronics stood out because of its alignment with our business strategy.
He added, Synchronics has a team of industry veterans who have developed an outstanding set of products that are distributed through a national network of dealer partners. Along with the Synchronics team, we will invest in the Retail Division to bring the best overall solution offering to the marketplace as we have done in the Hospitality, Convenience Retail and Entertainment industries.
Jeff Goldstein, Synchronics' president and founder, will run the Radiant Retail Division, which will be headquartered in Memphis, Tenn.
Synchronics has accumulated an installation base of more than 10,000 stores through the sales and service capabilities of more than 200 dealers focused on the retail market. Radiant will enhance the value to customers by marketing its hardware and additional software modules in combination with the Synchronics suite of software and services, including the CounterPoint product. Through this combination of products and services, the company will bring a tightly integrated service offering to the marketplace, it said.
The target market includes all retail specialty segments, from single-site operators to chains of hundreds of stores, across segments such as apparel, sporting goods, lawn and garden, automotive, giftware, hardware, electronics and others.
Atlanta-based Radiant provides point-of-sale, self-service kiosk and backoffice technology store for the hospitality, petroleum and convenience retail and entertainment industries.
Synchronics is a POS and business software development, support and distribution company. Its CounterPoint Version 7 and CounterPoint SQL offer retailers a complete business management package.