NEW YORK (TheStreet) Payment processing firm NCR (NCR) late Monday said it would pay $1.65 billion to acquire Digital Insight, adding online and mobile banking products to its portfolio.
Digital Insight, which is based in Menlo Park, Calif., is currently owned by Thoma Bravo.
NCR said that the deal, coupled with its purchase of London-based Alaric Systems for $84 million, will add online services to its banking software portfolio that already includes the technology used in branches, automated teller machines and mobile.
Alaric is described as a provider of secure transaction switching and fraud prevention software. NCR said the company is involved in 1.25 billion in transactions annually spread across 30 countries.
The deals continue a transformation by NCR, the one-time National Cash Register formed in 1884. The company in July 2011 agreed to acquire Radiant Systems for $1.2 billion to expand into the hospitality and retail payment management, and added retail software provider Retalix a year later for $650 million.
NCR chairman and CEO Bill Nuti in a statement said that the Duluth, Ga.-based firm for the past eight years has been "executing a deliberate and thoughtful strategic agenda to profoundly reinvent the company," calling the Digital Insight deal "a culmination" of years of effort.
"Today, we are fundamentally and permanently changing our largest line of business, financial services," Nuti said.
Digital Insight was formed in 1995 and was acquired by Intuit Inc. in 2007 for $1.35 billion. Thoma Bravo bought the business, which was then known as Intuit Financial Services, in August for $1.025 billion and restored the company's original name at that time.
Orlando Bravo, managing partner of San Francisco-based Thoma Bravo, in a statement said Digital Insight "has attracted interest from NCR with its strong set of online and mobile banking products, rich client list, and accomplished employees."
NCR received financial advice from a RBC Capital Markets team led by EJ Molenaar, JPMorgan Chase and Bank of America Merrill Lynch, and legal counsel from Sharon Johnson at Womble Carlyle Sandridge & Rice.
Thoma Bravo was advised by Gerald Nowak and Theodore Peto of Kirkland & Ellis.
--Written by Lou Whiteman in New York