News

NCR pursues business transformation through acquisitions

December 2, 2013

One down, one to go: Late Monday afternoon, NCR Corp. announced a definitive agreement to acquire Digital Insight Corp., a provider of online and mobile banking solutions, for $1.65 billion. At the same time, the company announced the completion of its acquisition of Alaric Systems Ltd., a provider of secure transaction switching and fraud prevention software, for approximately $84 million.

A news release from NCR said that the companies complement and extend the company's existing capabilities in the banking industry to form a single enterprise software platform for 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.

"This is a historic day for NCR," said company chairman and CEO Bill Nuti. "Today represents a culmination of many years of effort, particularly as it relates to what was once NCR's core businesses. ... With the announcements of our agreement to purchase Digital Insight and our acquisition of Alaric Systems, NCR becomes a powerful, global fin-tech solutions provider, enabling retail banks to deliver on the promise of omni-channel capabilities — on top of an unparalleled, innovative software platform."

NCR said that with the addition of Digital Insight, the company will enhance its ability to serve the mid-market retail banking segment, which includes Digital Insight's customer base of more than 1,000 FIs with 12 million online banking users and nearly 4.8 million mobile end-users. 

Alaric Systems payments processing and fraud prevention software allows FIs, processors and retailers to manage ATM, point of sale, e-commerce and mobile payment or banking transactions, deliver multi-channel payments integration and carry out enterprise fraud and risk management. Alaric Systems powers more than 1.25 billion transactions a month across 30 countries, and its solution set includes the Authentic payments and Fractals fraud prevention technologies.

The Digital Insight transaction is subject to the satisfaction of regulatory and other customary closing conditions and is expected to be completed in the first quarter of 2014. 

RBC Capital Markets LLC acted as lead financial advisor to NCR. J.P. Morgan and BofA Merrill Lynch also acted as financial advisors, and Womble Carlyle Sandridge & Rice LLP acted as legal counsel to NCR on the Digital Insight transaction.

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