NCR to buy payment processing co JetPay for $184 mn

NCR is set to buy Allentown, Pa.-based JetPay, a provider of payment processing and Human Capital Management solutions, for $184 million.
NCR SelfServ 80 ATMThe transaction will be a cash tender offer of $5.05 per JetPay share, which represents a multiple of 2.9 times 2018 consensus revenue forecast of $63.4 million. Diane Faro is the chief executive officer of JetPay.

This acquisition will enable NCR to integrate a cloud-based payments platform into its enterprise point-of-sale (POS) solutions for retail and hospitality industries. It also accelerates NCR’s strategy of increasing recurring revenue growth and expanding margins by enhancing its mix of software and services.

“The acquisition of JetPay is a key, strategic initiative that will enable NCR to create a full, end-to-end integrated payments offering for its enterprise-wide POS customers,” said NCR CEO Michael D. Hayford.

“This acquisition allows NCR to couple stickier, feature-rich POS and payment acceptance applications with payment processing,” said Rivka Gewirtz Little, research director, Worldwide Payment Strategies, IDC.