Credit: Shutterstock photoNCR CorporationNCR recently announced that it has acquired CimpleBox, which offers cloud-based software to small and mid-sized retailers and restaurant owners. However, the financial terms of the deal have not been disclosed.
The business software provider revealed that CimpleBox software, which is already integrated into its Silver mobile point-of-sale (POS) solutions, "helps businesses reduce the amount of time spent on manual processes, consolidates data and scheduling across multiple sites and gives management visibility into the business and day-to-day operations."
With this acquisition, NCR will be able to offer solutions to help retailers and restaurant owners gain from lower operational complexity. The combined solutions will facilitate them to efficiently manage inventory levels and improvise customer's in-store experiences. It also helps managers and employees in doing their routine work in a user-friendly manner.
The recent acquisition signifies the Duluth, GA-based company's multi-year effort toward expanding its software capabilities. The company strengthened its position in the POS market through the acquisition of Radiant Systems in Aug 2011. The $650 million acquisition of Retalix in 2013 helped NCR in growing its software business further.
The demand for NCR's POS solution is increasing among retailers and restaurant owners as it facilitates the automation of bill payment and accounting. As a result, managers get ample time for customer interaction, in turn improving productivity.
We believe that NCR's position in the self-service kiosk space is encouraging given the tremendous growth prospects. Regular product launches, growing popularity of its self-service offerings and synergies from acquisitions are the other catalysts.
However, similar offerings from the likes of Diebold Corp. DBD and International Business Machines Corp. IBM keep the company's profitability under pressure. Furthermore, the company's tepid guidance for first quarter and full-year 2016, to account for lower revenue growth across its business segments due to unfavorable exchange rates, keep us skeptical about its near-term performance.
Currently, NCR carries a Zacks Rank #4 (Sell). A better-ranked stock in the broader technology sector is Mentor Graphics Corp. MENT sporting a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
INTL BUS MACH (IBM): Free Stock Analysis Report
NCR CORP-NEW (NCR): Free Stock Analysis Report
MENTOR GRAPHICS (MENT): Free Stock Analysis Report
DIEBOLD INC (DBD): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
