NCR Corp. has announced a definitive agreement to acquire Allentown, Pennsylvania-based JetPay, a provider of end-to-end payment processing and human capital management solutions.
The transaction will be a cash tender offer of $5.05 per JetPay share (approximately $184 million total), which represents a multiple of 2.9 times 2018 consensus revenue forecast of $63.4 million, according to an NCR press release.
The acquisition will be financed with a combination of cash on hand and existing capacity under the company’s revolving credit facility. The offer has been approved by each company’s board of directors.
The acquisition will enable NCR to integrate a cloud-based payments platform into its enterprise point-of-sale solutions for retail and hospitality industries. The company said it also will accelerate its strategy of increasing recurring revenue growth and expanding margins by enhancing its mix of software and services.
The transaction is expected to close by year-end, the release said.