Duluth-based NCR plans to pay $1.65 billion for a company it hopes will boost its ability to help banks serve customers no matter where they are.
The purchase of California-based Digital Insight Corporation will help NCR expand into online and mobile banking, two of the fastest-growing segments of the financial industry.
NCR, whose business has largely been built on ATMs and cash registers, announced the buyout Monday.
The company also said it has acquired Alaric Systems Limited for $84 million. Alaric, based in London, provides fraud prevention software, among other products.
"With the announcements of our agreement to purchase Digital Insight and our acquisition of Alaric Systems, NCR becomes a powerful, global FinTech solutions provider enabling retail banks to deliver on the promise of omni-channel capabilities - on top of an unparalleled, innovative software platform," Bill Nuti, NCR's chairman and chief executive officer, said in a statement.
The move is another step in NCR’s effort to transform itself into more of a software company than a hardware company. Improving its software holdings is expected to help the company expand its business and be more nimble to adapt to changing shopping trends, leading to greater profits.
In July 2011, NCR bought Alpharetta-based Radiant Systems for $1.2 billion; in 2012 it purchased Retalix, an Israeli company, for $650 million.
NCR said Digital Insight will help it enhance its access to mid-market retail banking, including Digital Insight’s customer base of more than 1,000 financial institutions, 12 million online-banking users and nearly 4.8 million mobile users.
Through Alaric, NCR gains an authorization and routing system for managing transactions at the ATM, point of sale and mobile as well as fraud detection and prevention software .
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