New York, December 02, 2013 -- Moody's Investors Service placed the ratings of NCR Corporation ("NCR") on review for downgrade following the company's announcement that it will acquire Digital Insight and Alaric Systems Limited for all-cash consideration of over $1.7 billion. As Moody's expects the entire purchase price will be funded primarily with debt, the company's credit profile will be strained as the anticipated deleveraging will be delayed further. Moody's estimates that the transaction would increase the company's adjusted debt/EBITDA leverage above 5.0 times at closing, although with the company's strong free cash flow generation, NCR should have the capacity to reduce its funded debt and pension underfunding over the next couple of years. Nevertheless, the acquisition marks the third consecutive debt funded purchase by the company, and in addition to increasing financial risk, the company would be integrating Digital Insight while it is still finishing up the integration of Retalix, which it acquired earlier in 2013.

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