News

Radiant to acquire vendor of POS systems for hospitality

December 14, 2003

ATLANTA -- Radiant Systems Inc. has entered into an agreement to acquire Aloha Technologies, a provider of point-of-sale systems for the hospitality industry, for $45 million.

Aloha's Chief Executive Officer Manny Negreiro will run Radiant's new hospitality division, which will be based in Dallas, according to a news release. The new division will be a premier technology provider for the hospitality industry.

With the expansion, Radiant aims to build its presence in the industry, offering comprehensive solutions from advanced POS systems to self-service kiosks, customer loyalty systems and integrated back-office solutions.

According to the release Radiant expects to be well positioned to offer the leading solution for quick-service, table-service, and contract foodservice operators, from the largest multi-national chains to single-site businesses.

"We find companies are eager to replace their older, limited legacy systems with innovative new technologies that help drive topline growth," said John Heyman, Radiant chief executive officer.

Heyman continued, "In addition, we plan to leverage Aloha's key innovations such as their eCard loyalty and gift card systems in our other markets. By joining forces, we believe we are on a clear path to becoming the number one foodservice technology provider in the world while also improving our ability to better serve the petroleum and convenience store and entertainment industries."

Radiant expects Aloha to contribute between $20 million and $28 million in revenue in 2004 and expects the acquisition to be accretive to earnings in 2004. The acquisition should close early in the first quarter of 2004.

This acquisition is expected to have no impact on Radiant's previously announced split-off of its enterprise software business and is not contingent upon the closing of that transaction, according to the release.