{"id":3386,"date":"2018-11-08T06:20:43","date_gmt":"2018-11-08T12:20:43","guid":{"rendered":"https:\/\/reformingretail.com\/?p=3386"},"modified":"2019-01-23T10:26:06","modified_gmt":"2019-01-23T16:26:06","slug":"ncrs-jetpay-acquisition-unsurprisingly-upsets-ncr-customers","status":"publish","type":"post","link":"https:\/\/reformingretail.com\/index.php\/2018\/11\/08\/ncrs-jetpay-acquisition-unsurprisingly-upsets-ncr-customers\/","title":{"rendered":"NCR&#8217;s JetPay Acquisition (Unsurprisingly) Upsets NCR Customers"},"content":{"rendered":"<p>NCR, the parent company of Aloha POS for restaurants and Counterpoint POS for retail, <a href=\"https:\/\/www.digitaltransactions.net\/ncr-to-take-a-direct-role-in-payments-with-its-pending-184-million-acquisition-of-jetpay\/\">announced the acquisition<\/a> of <a href=\"https:\/\/www.jetpay.com\/\">JetPay<\/a>, a large payments ISO. Consistent with NCR modus operandi, NCR offered a <strong>very<\/strong> hefty premium of 138% for the already-public company. Usually an acquirer can subsume a target for a <a href=\"http:\/\/www.informit.com\/articles\/article.aspx?p=2109325&amp;seqNum=4\">20% premium<\/a>, especially if working with shareholders ahead of time. All-in the deal looks like it will cost NCR $184M in cash, which is no small sum for a company working to pay off its debt (ironically from previous M&amp;A activity).<\/p><p>JetPay is a unique payments asset in that it's part of an\u00a0exclusive group of payments processors that have both front end and backend capabilities.\u00a0Front end entails full authorization and capture technology direct to card brands. Backend entails settlement, interchange quantification calculations, statement generation and clearing directly with the bank. This is important because card brands (Visa, et. al.) don't want more end points: owning both front and back ends is a big control factor. Here's <a href=\"https:\/\/www.jetpay.com\/wp-content\/uploads\/2017\/07\/jetpay_2016_annual_report.pdf\">how JetPay explains itself<\/a>:<\/p><div class=\"leaky_paywall_message_wrap\"><div id=\"leaky_paywall_message\"><a href=\"https:\/\/reformingretail.com\/index.php\/subscribe\/\">Subscribe<\/a> or <a href=\"https:\/\/reformingretail.com\/index.php\/log-in\/\">log in<\/a> to read the rest of this content.<\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>NCR, the parent company of Aloha POS for restaurants and Counterpoint POS for retail, announced the acquisition of JetPay, a large payments ISO. Consistent with NCR modus operandi, NCR offered a very hefty premium of 138% for the already-public company. Usually an acquirer can subsume a target for a 20% premium, especially if working with [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3460,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[5,4,3],"tags":[],"class_list":["post-3386","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-solutions","category-merchants","category-pos"],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p81nA2-SC","jetpack_featured_media_url":"https:\/\/i0.wp.com\/reformingretail.com\/wp-content\/uploads\/2018\/10\/a3-4.jpg?fit=600%2C284&ssl=1","_links":{"self":[{"href":"https:\/\/reformingretail.com\/index.php\/wp-json\/wp\/v2\/posts\/3386","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/reformingretail.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/reformingretail.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/reformingretail.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/reformingretail.com\/index.php\/wp-json\/wp\/v2\/comments?post=3386"}],"version-history":[{"count":21,"href":"https:\/\/reformingretail.com\/index.php\/wp-json\/wp\/v2\/posts\/3386\/revisions"}],"predecessor-version":[{"id":4298,"href":"https:\/\/reformingretail.com\/index.php\/wp-json\/wp\/v2\/posts\/3386\/revisions\/4298"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/reformingretail.com\/index.php\/wp-json\/wp\/v2\/media\/3460"}],"wp:attachment":[{"href":"https:\/\/reformingretail.com\/index.php\/wp-json\/wp\/v2\/media?parent=3386"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/reformingretail.com\/index.php\/wp-json\/wp\/v2\/categories?post=3386"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/reformingretail.com\/index.php\/wp-json\/wp\/v2\/tags?post=3386"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}