But losses mount for the home furnishings e-retailer that went public in October.
The deal helps Retalix expand in the market for web-based store payment systems.
Retalix, which sells in-store point-of-sale and other forms of retail management software, has acquired payment software company MTXEPS LLC for approximately $18.95 million in cash, Retalix said today. Under terms of the deal, Retalix will pay up to an additional $6 million in cash over the next two years if the acquisition results in unspecified performance metrics. In addition to point-of-sale systems, Retalix also provides technology for customer relationship management, marketing, merchandising and logistics systems. Its products include software for supporting in-store customer service through mobile devices.
MTXEPS offers both on-premise and Internet-hosted software-as-a-service versions of its retail store payment systems, but it’s the SaaS version that Retalix says it has a particular interest in to help it meet strong demand among retailers.
“SaaS is one of our growth engines, and MTXEPS’s SaaS platform and offerings enhance our position in this rapidly evolving space,” says Retalix CEO Shuky Sheffer.
Paula Rosenblum, managing partner with research and advisory firm Retail Systems Research, says MTXEP should help Retalix better serve midsize retailers. “It gives Retalix mid-market clients a viable SaaS option,” she says.
Retalix, based in Israel but with U.S. headquarters in Plano, TX, has installed its technology in about 60,000 stores in 50 countries. It has a strong market presence among supermarkets, convenience stores, retail fuel stations, drugstores and department stores, including U.S.-based Hy-Vee and Associated Food Stores and Europe-based Tesco and Carrefour. Tesco is No. 3 in the Internet Retailer Top 300 Europe Guide;Carrefour is No. 12.
MTXEPS, based in Aliso Viejo, CA, serves a customer base of more than 20,000 stores in North America, including U.S.-based supermarket chains Hannaford Bros. Co. and Publix Super Markets. “As our solutions become part of the Retalix offering, we strongly believe that our customers and partners will benefit from Retalix’s culture of innovation, global presence and strong financial position,” says Jon Elwood, president of MTXEPS.