Retalix Ltd. (RTLX) rose the most on record in Tel Aviv after NCR Corp. (NCR:US) said it will buy the maker of supermarket software for $650 million, the third-biggest acquisition in Israel this year.
Retalix jumped 32 percent to 112.40 shekels, or the equivalent of $29.45 in Israel, the steepest advance since the Ra’anana-based company started trading in 1996. Volume was more than 50 times the three-month daily average. Israel’s TA-25 Index (TA-25) rose 0.3 percent to 1,229.97. Retalix’s U.S.-traded shares (RTLX:US) soared 35 percent yesterday.
NCR, the world’s biggest supplier of automated teller machines, yesterday said it will pay $30 per share for Retalix. Duluth, Georgia-based NCR said it will finance the buyout through cash and debt which is expected to be completed in 2013. The takeover ranks behind Paradigm Ltd.’s Aug. 30 sale to Apax Partners LLP and JMI Management Inc. for $1 billion, and Israeli businessman Shlomo Eliahu’s $913 million purchase of Migdal Insurance & Financial Holding Ltd. (MGDL) last month.
“Retalix was apparently destined to have a bigger partner,” Saar Golan, head of equities at Clal Finance Batucha Brokerage Ltd. in Tel Aviv, said today by phone. “This is more evidence that Israeli technology is very interesting and contributes to big global companies. We expect to see more acquisitions.”
Retalix’s software and services are used at over 70,000 retail locations in more than 50 countries, the two companies said in a statement. NCR said it expects the acquisition to bolster the software it can offer to financial, travel and hospitality clients.
Shares of NCR yesterday retreated 0.9 percent to $23.75 before trading was halted at 3:15 p.m. in New York after Israeli daily Calcalist reported the deal. Retalix’s stock trading resumed at 4:30 p.m. and it rose to $29.73 after hours.
The advance sent the Bloomberg Israel-US Equity Index (ISRA25BN) of the largest New-York traded Israeli companies 1.2 percent higher in its seventh day of gains, the longest stretch of increases since July 2011.
The offer is a 37 percent premium to Retalix’s closing price on Nov. 27, putting the transaction “on par” with RedPrairie Corp.’s planned purchase of JDA Software Group Inc. (JDAS:US), a $1.9 billion deal announced on Nov. 1 that merges two providers of software for managing corporate supply chains, Uerkwitz said.
RedPrairie Corp., backed by private-equity firm New Mountain Capital LLC, will pay a 33 percent premium over Scottsdale, Arizona-based JDA’s stock price on Oct. 26.
Retalix reported third-quarter revenue of $70.5 million on Nov. 14, compared with $61.5 million a year earlier. The company said on Nov. 12 that its technology will be used in more than 3,000 Woolworths Ltd. retail stores in Australia and New Zealand.
Israel, which has a population of similar size to Switzerland’s, has about 60 companies traded on the Nasdaq Stock Market, the most of any country outside the U.S. after China. The nation is also home to more startup companies per capita than the U.S.
Alon Holdings Blue Square-Israel Ltd. (BSI:US), the country’s second-largest food retailer, surged the most in eight weeks in New York, advancing 13 percent to $2.68 as the company closed supermarket branches to cut costs. Shares in Tel Aviv slipped 0.3 percent today to 10.01 shekels, or the equivalent of $2.62.
Mellanox Technologies Ltd. (MLNX:US), the Israeli maker of products used to transfer and store data, fell the most in six weeks on concern slowing corporate spending on technology will depress revenue. Mellanox tumbled 9.6 percent to $76.23 in New York. Its shares in Tel Aviv today dropped 11 percent to 289.90 shekels, or $75.95.
“Investors are wondering when they’ll get greater certainty into the demand environment,” Brian Freed, an analyst at Wunderlich Securities Inc. who has a buy rating on Mellanox, said by phone from Denver yesterday. “Demand has struggled this year, and although Mellanox bucked the trend for 2012, there’s concern as to whether corporate buyers will horde cash or spend.”
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