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NCR Boosts Digital Banking Capabilities Through Tech IP Buyout

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NCR Corporation (NCR - Free Report) recently announced acquiring the fintech intellectual property (“IP”) for Open Banking from Spoke Technologies Limited. The latest acquisition is aligned with the global enterprise technology provider’s sustained focus on accelerating its move into the open and international digital banking space. The company didn’t disclose the financial terms of the transaction.

With this IP buyout, NCR got the key software that will help in building market-leading data intelligence for its clients. The acquisition will enhance the company’s data integration capabilities supporting personalization and customer-led experiences, which are applicable across financial services.

Ismail Amla, Executive Vice President at NCR, said, “We are excited about the added value this brings to clients who want to drive digital banking in international markets, enable open banking and to bring together retail and financial experiences for our clients and their customers.”

Over the past few decades, NCR has been supplementing its business growth via acquisitions, which, in turn, has helped it in enhancing its capabilities in different areas. In January 2022, it concluded the buyout of the Miami-based LibertyX, a leading cryptocurrency solution provider.

The LibertyX buyout is likely to expand NCR’s capabilities in offering a completely digital currency solution to its customers. The solutions will aid its clients in conducting cross-border payments and remittances as well as buying and selling cryptocurrency. Also, clients will be able to accept digital currency payments across digital and physical channels.

In August 2021, NCR signed a definitive agreement to acquire Foremost Business Systems, a Minneapolis-based point-of-sale and restaurant solutions provider.

In June 2021, it completed the buyout of Cardtronics, which further expanded its payments platform and helped the firm connect to retail and bank customers.

In February 2021, NCR acquired Terafina, a leading solution provider for customer account opening and onboarding across digital, branch and call center channels. This expanded the company’s sales and marketing capabilities in its Digital First Banking platform.

In January 2021, the company acquired Freshop, a grocery e-commerce solution provider, to enable the faster deployment of buy-online, pickup-in-store capabilities for retailers, including regional and small grocery chains.

Such buyouts will keep contributing to NCR’s growth. In its latest financial results, the company revealed that revenues for the fourth quarter of 2021 increased 15% year over year to $2.03 billion, mainly driven by contributions from the Cardtronics business and solid growth across the company’s banking and hospitality segments.

Zacks Rank & Key Picks

Currently, NCR carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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