Best known for its ATMs, NCR Corp. has long been close to the point-of-sale payment business with its software products such as Retail One, Aloha, and NCR Silver, and its hardware for retailers and the hospitality industry that includes self-checkout systems for grocery stores. Now NCR is about to dive into merchant acquiring with its pending deal to buy Allentown, Pa.-based processor JetPay Corp. for $184 million in cash.
Atlanta-based NCR’s offer of $5.05 per JetPay share, announced Monday, represents a multiple of 2.9 times stock analysts’ consensus 2018 revenue forecast of $63.4 million for JetPay, NCR said. The acquisition, which has been approved by both companies’ boards, is expected to close by year’s end pending regulatory approvals.
JetPay serves about 10,000 merchants, and it has relationships with about 200 independent sales organizations, independent software vendors, value-added resellers, and financial institutions. Last year JetPay processed $5.3 billion in payment card volume and $5.2 billion in electronic-check volume, according to an investor presentation. JetPay also has a division that provides payroll processing and human-resources services that processed $6.8 billion in payroll volume in 2017.