Retalix POS Software Company Sold to NCR

US-based retail hardware and software giant NCR has agreed to pay approximately $650 million to acquire Retalix, a retail technology company.

NCR management is using many elliptical phrases about “strengthening strategy,” “commitment to delivering solutions,” and “improving business processes and enabling experiences,” but there were no clearly stated reasons for the deal.

No doubt, Retalix was a bright star on the point-of-sale (POS) software landscape, with some interesting products and technology potential. And I would presume that its rich client base was a primary motivation for the acquisition by NCR— over 70,000 retail locations with more than 400,000 users in over 50 countries is a good gain. As a publicly traded company, NCR feels the pressure to transform from medium to large to enormous; an acquisition move like this isn’t exactly ingenious.

What is still unclear: how exactly existing clients of Retalix will be affected, what the factual plans are, and what the real value of the Retalix deal will be for its customers. It looks like the shareholders of both vendors are probably on the winning side, but I am not that sure about the value to Retalix end customers—they have had everyday dealings with a flexible and relatively compact business, but they will now be dealing with a monstrous entity, which is potentially a very different relationship. Hopefully the customers’ interests will not be sacrificed by the deal and the acquisition will soon show a positive, synergizing effect.
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