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Radiant Systems Strengthens European Presence through Acquisition of Orderman GmbH
Salzburg operations to become global headquarters for mobile solutions
ATLANTA, (July 7, 2008) — Radiant Systems, Inc. (Nasdaq: RADS) announced today that it has acquired Orderman GmbH, the world’s leading manufacturer of wireless handheld ordering and payment devices for the hospitality industry.
“Orderman’s innovative, mobile devices are widely recognized in the European hospitality marketplace,” said John Heyman, CEO of Radiant Systems. “This acquisition puts Radiant in an excellent position to further accelerate the adoption of mobile devices in the global hospitality sector and to bring additional innovations to market across all of the industries we serve.”
Based in Salzburg, Austria, Orderman develops wireless, handheld point of sale (POS) devices that are deployed in a variety of hospitality venues, including restaurants, cafes, arenas, stadiums, and ski resorts. Restaurant operators typically realize a positive return on their investment in Orderman handheld terminals in less than twelve months by enabling servers to wait on a greater number of tables, increasing the restaurant’s table-turns through faster ordering and payment, and improving order accuracy.
“Radiant Systems and Orderman are both globally-minded companies that provide innovative technology solutions to the hospitality industry,” said Alois Eisl, CEO of Orderman. “We’re pleased to join Radiant Systems in leading the charge for mobile handheld device adoption in the retail and hospitality industries not only in Europe, but also in the United States and the rest of the world.”
Orderman distributes its solutions through a reseller network of more than 600 partners, predominantly in Europe. These partners have deployed approximately 50,000 Orderman handheld devices in more than 20,000 restaurants in 45 countries. Orderman’s devices process millions of transactions per day.
“We view Orderman’s reseller network as a strategic asset that will accelerate Radiant’s growth in Europe,” added Heyman. “Our track record of partnering with resellers gives us an opportunity to add additional value to their businesses and their end customers.”
Radiant Systems will advance its capabilities with wireless and mobile devices by leveraging Orderman’s expertise across all segments of retail and hospitality. Salzburg immediately becomes Radiant’s global center of excellence for mobile devices, with Orderman’s existing senior leadership managing the organization.
Radiant Systems acquired Orderman for approximately $30.85 million in cash, subject to adjustment based on Orderman’s net assets at closing. The purchase price was funded through cash on hand and an expanded revolving credit facility. Radiant Systems management will discuss the acquisition on a conference call scheduled for 12:00 p.m. Eastern Time on Wednesday, July 9, 2008. This call is being webcast by Thomson and can be accessed at Radiant's web site: http://phx.corporate-ir.net/phoenix.zhtml?c=115271&p=irol-irhome. The call will also be available via telephone at 1-888-566-5776 (within the US) and 1-210-839-8500 (outside of the US) - reference pass code # 5766832.
Management plans for the acquisition to be accretive to earnings in 2009 and for the first 12 months of its operations under Radiant Systems. For the remainder of 2008 the acquisition is expected to add approximately $9 million in revenue and be dilutive to earnings in the amount .03-.05 per share due to seasonality, increased product and distribution investment, and infrastructure costs to build out the company's European platform.
Due to the strength of the core Radiant business, Management expects to maintain the low end of its adjusted earnings guidance at $.84 per diluted share and will provide updated and more detailed guidance on the second quarter earnings call in late July.
About Radiant Systems, Inc.
Headquartered in Atlanta, Radiant Systems, Inc. (Nasdaq: RADS) is a global provider of innovative technology to the hospitality, retail, and entertainment industries. For more than two decades, Radiant's point of sale hardware and software solutions have helped to redefine the consumer experience in more than 100,000 restaurants, retail stores, stadiums, parks, arenas, cinemas, convenience stores, fuel centers and other customer-service venues. Radiant has offices in North America, Europe, Asia and Australia. For more information, visit www.radiantsystems.com.
About Orderman
Orderman GmbH is the global market leader of radio ordering systems in the hospitality industry. Headquartered in Salzburg, Austria, Orderman handheld devices are currently used in more than 20,000 restaurants in 45 countries worldwide. Specifically designed to provide better and faster service, Orderman handheld devices drive increased efficiency, profits and customer satisfaction. Each day, approximately 20 new restaurants choose Orderman. In addition, millions of orders are processed by over 50,000 Orderman handhelds every day. For more information, visit www.orderman.com.
This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to financial results and plans for future business development activities, and are thus prospective. Forward-looking statements include all statements that are not statements of historical fact regarding intent, belief or current expectations of the Company, its directors or its officers. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company's ability to control. Actual results may differ materially from those projected in the forward-looking statements. Among the key risks, assumptions and factors that may affect operating results, performance and financial condition are the ability of the Company to effectively integrate the acquired business and its technologies into its existing businesses and products, the risk that the acquired business and technologies do not perform as expected or are subject to liabilities that were not disclosed or identified by the Company prior to closing, the Company's reliance on a small number of clients for a large portion of its revenues, fluctuations in its quarterly results, its ability to continue and manage its growth, liquidity and other capital resources issues, competition and the other factors discussed in detail in the Company's periodic filings with the Securities and Exchange Commission. The Company undertakes no obligation to update any forward-looking statements.
