JetPay shares rocket higher on $184 million buyout offer by NCR Corp
Shares of JetPay Corp (NASDAQ:JTPY), a provider of end-to-end payment processing, soared Monday after announcing it was being bought out by NCR Corp (NYSE:NCR).
The transaction will be a cash tender offer of $5.05 per JetPay share. The price is for approximately $184 million and will be financed with a combination of cash on hand and existing capacity under NCR’s revolving credit facility. The offer has been approved by each company’s board of directors.
The price of $5.05 represents a 138.2% premium from the Friday close in the stock of $2.12.
Shares of JetPay more than doubled to $4.975 by midday Monday.
This acquisition will enable NCR to integrate a cloud-based payments platform into its enterprise point-of-sale (POS) solutions for retail and hospitality industries, a company statement said. It also accelerates NCR’s strategy of increasing recurring revenue growth and expanding margins by enhancing its mix of software and services.
“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,” said NCR President and CEO Michael Hayford.
“Enabling payments as part of our transactions is part of our long-term strategy to create integrated value for our clients,” the official said.
READ: Net Element launches payments solution for legal cannabis industry; shares double, then halt
The transaction is anticipated to close by year-end, subject to regulatory approval and other customary closing conditions.
NCR Corporation (NCR) is a leader in banking and commerce solutions, enabling 760 million transactions daily across the financial, retail, hospitality, travel, telecom and technology industries. NCR is headquartered in Atlanta, Georgia and does business in 180 countries.
JetPay is a leading provider of vertically integrated solutions for businesses including card acceptance, processing, payroll, payroll tax filing, human capital management services, and other financial transactions. It provides a single vendor solution for payment services, debit and credit card processing, ACH services, and payroll and human capital management needs for businesses throughout the United States.
The company is based in Allentown, Pennsylvania.
Reporting by Rene Pastor, contactable on [email protected]
Story by ProactiveInvestors
Source: https://www.proactiveinvestors.com/companies/news/207598/jetpay-shares-rocket-higher-on-184-million-buyout-offer-by-ncr-corp
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