NCR’s $650 Million Retalix Buy Latest Software Consolidation

From International Business Time :

Is anything left to buy now that NCR Corp. NYSE: NCR), the No. 1 maker of ATM equipment and point-of-sale terminals has agreed to acquire Israel’s Retalix (Nasdaq: RTLX), one of the best-regarded developers of retail software?

The announcement came only four weeks after Retalix’s principal rival, JDA Software (Nasdaq: JDAS) of Scottsdale, Ariz., agreed to be bought by private RedPrairie Corp. of Alpharetta, Ga., in a $1.9 billion deal.

The consolidation illustrates desire by retailers to automate as much of every transaction as possible, given that gross margins in some stores, such as supermarkets, are razor-thin.


The sector has been relatively quiet since database giants Oracle Corp. (Nasdaq: ORCL), of Redwood Shores, Calif., battled Germany’s SAP (NYSE: SAP) for weeks in 2005 over Retek, a retail software specialist. Oracle finally won but paid $650 million for the Minnesota developer.

NCR, of Duluth, Ga., was the pioneer in developing cash registers in the 19th century and became one of the top computer makers in the 20th century and for a while was owned by AT&T (NYSE: T), the No. 1 telecommunications company.

But after becoming independent again, NCR has focused exclusively on financial transactions, spinning off Teradata Corp., (NYSE: TDC), one of the top vendors of data warehousing computers and software.


The acquisition leaves only a small number of publicly traded companies that could attract the eye of companies interested in e-commerce, such as International Business Machines Corp. (NYSE: IBM), Hewlett-Packard Co. (NYSE: HPQ), (Nasdaq: AMZN) and eBay (Nasdaq: EBAY).

Among them are SPS Commerce (Nasdaq: SPSC) of Minneapolis and VeriFone Systems (NYSE: PAY), of San Jose, Calif., which at one time was part of HP.


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