Oppenheimer Comments on NCR Acquisition of Radiant Systems

After the close on Monday, NCR Corp. NCR announced it had signed “a definitive agreement to acquire Radiant Systems RADS for $28/share or ~$1.2B,” Oppenheimer reports. “Based on recent consensus forecasts, NCR is paying roughly 5-7x RADS' CY12E recurring revenue, 14-17x CY12E EBITDA and 24x CY12 EPS estimates,” Oppenheimer writes. “NCR plans to finance the majority of the deal through new debt ($1.1B) and the remainder from existing cash on its balance sheet.” Radiant Systems closed Monday at $21.45; NCR closed at $19.09.