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NCR accelerates growth in Brazil through strategic acquisitions in hospitality sector

Acquisitions strengthens NCR’s restaurant technology operations and distribution

Duluth, GA – NCR Corporation (NYSE: NCR) today announced a series of strategic acquisitions in the fast growing hospitality industry that will enable NCR to increase and strengthen its overall presence in Brazil. NCR has a long-standing history of commitment to the Brazilian market, and these acquisitions will contribute to its continued growth.

NCR acquired POS Integrated Solutions, a reseller of the NCR Aloha solution for restaurants and Wyse Sistemas de Informática Ltda., a market-leading provider of software solutions, including the Colibri suite of hospitality software. Radiant Distribution Solutions (RDS), a NCR Hospitality hardware distribution partner was also acquired. Terms of the deals were not disclosed. 

According to Euromonitor, restaurant spending in Brazil is forecasted to increase by a 9-10% annual growth rate.

“Brazil is one of the fastest-growing markets in the world and its rapidly expanding middle class is driving tremendous growth for hospitality businesses,” said Tad Phelps, vice president of hospitality sales for the Americas, NCR Hospitality. “Additionally, with the 2014 World Cup and the 2016 Olympics being held in Brazil, significant infrastructure investments will need to be made in foodservice and retail operations to support the influx of people into the country.”

The combination of acquisitions with NCR’s existing hospitality business will enable NCR to increase distribution, add to the strength of its portfolio, open new market segments and deliver solutions that enable hospitality businesses to better manage sales transactions and drive productivity gains.

“NCR is globally known as a technology provider that provides innovative solutions to help restaurant owners operate with efficiency, manage effectively, and build customer connections,” said Mauricio Medeiros, former chief executive officer, and now director of channel sales, of Wyse. “Becoming part of NCR will enable us to invest more in our solutions and supporting our customers.”

“With the backing of NCR and our new stable of products, we are poised to become the leader in the restaurant space throughout Brazil, said Luiz Bento, general manager, NCR Aloha Brazil.  “We are excited about the opportunity to bring new hosted products from NCR to the market, which will further our position as the industry leader.”

The expansion of NCR’s hospitality business in Brazil follows a strategic alliance with Scopus Technologia Ltda, a wholly-owned subsidiary of Banco Bradesco, and an agreement for a target 30,000 ATMs over five years from NCR’s manufacturing plant in Manaus. NCR’s growth program for the retail industry has included an expansion of retail solutions for Brazil, including the point-of-sale software and the signing of strategic channel partners to reach retailers across Brazil.  

About NCR Corporation
NCR Corporation (NYSE: NCR) is a global technology company leading how the world connects, interacts and transacts with business. NCR’s assisted- and self-service solutions and comprehensive support services address the needs of retail, financial, travel, hospitality, entertainment, gaming, public sector, telecom carrier and equipment organizations in more than 100 countries. NCR (www.ncr.com) is headquartered in Duluth, Georgia. 

About Wyse Sistemas de Informática Ltda.
For more than 25 years, Wyse Sistemas has been a leading provider of the Colibri business automation software to food service locations in Brazil.

About POS Integrated Solutions
POS Integrated Solutions is one of the first companies in Brazil specializing in management solutions for the point of sale.  POS is the exclusive distributor in Brazil for the Aloha suite of products for food service.

About Radiant Distribution Solutions
Radiant Distribution Solutions is the exclusive distributor of Radiant terminals in Brazil.

 

Note to Investors
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements use words such as “seek,” “potential,” “expect,” “strive,” “continue,” “continuously,” “accelerate,” and other similar expressions or future or conditional verbs such as “will,” “should,” “would” and “could”. They include statements as to the company’s anticipated or expected results; future financial performance; projections of revenue, profit growth and other financial items; discussion of strategic initiatives and related actions; comments about the company’s future economic performance; comments about future market or industry performance; and beliefs, expectations, intentions, and strategies, among other things. Forward-looking statements are based on management’s current beliefs, expectations and assumptions, and involve a number of known and unknown risks and uncertainties, many of which are out of our control.

Forward-looking statements are not guarantees of future performance, and there are a number of factors, risks and uncertainties that could cause actual outcomes and results to differ materially from the results contemplated by such forward-looking statements. In addition to the factors discussed in this release, these other factors, risks and uncertainties include those relating to: domestic and global economic and credit conditions, which could impact the ability of our customers to make capital expenditures, purchase our products and pay accounts receivable, and drive further consolidation in the financial services sector and reduce our customer base; the financial covenants in our secured credit facility and their impact on our financial and business operations; our indebtedness and the impact that it may have on our financial and operating activities and our ability to incur additional debt; the adequacy of our future cash flows to service our indebtedness; the variable interest rates borne by our indebtedness and the effects of changes in those rates; shifts in market demands, continued competitive factors and pricing pressures and their impact on our ability to improve gross margins and profitability, especially in our more mature offerings; manufacturing disruptions affecting product quality or delivery times; the effect of currency translation; our ability to achieve targeted cost reductions; short product cycles, rapidly changing technologies and maintaining a competitive leadership position with respect to our solution offerings; tax rates; ability to execute our business and reengineering plans; turnover of workforce and the ability to attract and retain skilled employees, especially in light of continued cost-control measures being taken by the company; availability and successful exploitation of new acquisition and alliance opportunities; our ability to sell higher-margin software and services in addition to our hardware; the timely development, production or acquisition and market acceptance of new and existing products and services (such as self-service technologies), including our ability to accelerate market acceptance of new products and services; changes in Generally Accepted Accounting Principles (GAAP) and the resulting impact, if any, on the company's accounting policies; continued efforts to establish and maintain best-in-class internal information technology and control systems; market volatility and the funded status of our pension plans; the success of our pension strategy; compliance with requirements relating to data privacy and protection; expected benefits related to acquisitions and alliances, including the acquisition of Radiant Systems, Inc., not materializing as expected; and other factors detailed from time to time in the company’s U.S. Securities and Exchange Commission reports and the company’s annual reports to stockholders. The company does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.