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NCR BUYING RADIANT SYSTEMS

Radiant SystemsPoint-of-sale specialist Radiant Systems is about to disappear into the caverns of NCR by way of a tender offer. For many in this business, Radiant's best known product was the former Synchronics Counter Point product. The NCR deal is a cash tender of $28 per Radiant Systems share, giving it a value of about $1.2 billion.

Since Radiant had revenue of $346.4 million for the year ended December 31, that's a pretty good multiple – you can do the math. Its most recently reported quarter, the first quarter ended March 31, was a good one with net income of just under $6 million, compared to $2.6 million in last year's corresponding period. First-quarter revenue was $87.1 million, an increase of from $79.5 million a year earlier. The deal drew the usual flash flood of law firms that say they are investigating whether the Radiant Systems directors breached their fiduciary obligations. Looking at the multiples for software deals that was trotted out by Epicor when it faced the similar array of legal harpies, it seems to me to be on the high end of deals. But what do I know? Unfortunately, this deal takes yet another company out of public reporting and makes analysis of this market difficult. So far this year, we've lost Epicor, Activant and Lawson Software as reporting entities. The only good news was when Infor began reporting revenue.

 

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