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NCR Corp. To Acquire JetPay For About $184 Mln - Quick Facts

NCR Corp. (NCR) said Monday it has agreed to acquire Allentown, Pennsylvania-based JetPay (JTPY), a provider of end-to-end payment processing and Human Capital Management solutions, for about $184 million. The offer has been approved by each company's board of directors.

The transaction will be a cash tender offer of $5.05 per JetPay share, which represents a multiple of 2.9 times 2018 consensus revenue forecast of $63.4 million. The companies expect the transaction to close by year-end.

NCR said it will finance the acquisition with a combination of cash on hand and existing capacity under its revolving credit facility.

"The acquisition of JetPay is a key, strategic initiative that will enable NCR to create a full, end-to-end integrated payments offering for its enterprise-wide POS customers. Enabling payments as part of our transactions is part of our long-term strategy to create integrated value for our clients," said NCR President and Chief Executive Officer, Michael Hayford.

NCR also noted that two of JetPay's major stockholders, Flexpoint Ford, a private equity investment firm that specializes in the financial services and healthcare industries, and Larry Stone, a longstanding executive in the payment processing industry, have agreed to tender their shares in support of the transaction.

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