Global ATM maker NCR Corp. said it would buy Israeli software company Retalix Ltd. for $650 million in a bid to expand its footprint in the retail sector.
Retalix shareholders will get $30 per share, or a near 37 percent premium to the stock's closing price of $21.90 Tuesday on the Nasdaq.
Reports of a deal earlier in the day on Wednesday pushed Retalix shares up nearly 35% to $29.50.
NCR, which has a market value of $3.83 billion, said it planned to finance the deal through a combination of cash and debt, and expected it to add to its 2013 non-GAAP earnings. It said it expected pre-tax cost synergies of about $5 million to $10 million in 2013, and about $20 million to $25 million over three years.
The company said it would incur a one-time cost of about $30 million to achieve the synergies.
Retalix provides software and services to retailers, including supermarkets, convenience stores, fuel stations, drugstores and department stores.
Its products support point-of-sale, sales channels and in-store management, customer management and marketing, merchandising, and logistics.
Retalix's strength with blue-chip retailers will be highly complementary to NCR and will enable additional sales opportunities across the combined installed base, NCR said in a statement.
J.P. Morgan and Jefferies & Co. advised the companies on the deal.
NCR shares closed at $23.75 on Wednesday on the New York Stock Exchange.