Management Strategies

11:38 AM
Connect Directly
RSS
E-Mail
50%
50%

ACI Worldwide Proposes to Acquire S1 Corporation

The proposal jeopardizes S1's pending merger with ACI competitor Fundtech.

New York-based international payment systems provider ACI Worldwide announced today that it has proposed to buy out the outstanding shares of S1 Corporation, an Atlanta-based provider of payment, online banking and branch banking solutions worldwide. ACI is offering $9.50 per share in cash and stock, for a total value of about $540 million -- a 33 percent premium over S1's closing price yesterday.

In a news release issued this morning, ACI stated that combining the two complementary companies would create "a compelling opportunity to establish a full-service global leader of financial and payments software with significant scale."

This proposal competes with an offer made last June by Fundtech, an ACI competitor based in Jersey City, N.J. Fundtech proposed a stock-for-stock merger with S1 in order to create a combined $700 million company. If completed, the merger would give Fundtech shareholders 2.72 shares of S1 common stock for each Fundtech ordinary share they owned.

ACI's proposal offers S1 shareholders a choice between a combination of cash and/or stock for their shares, subject to proration based on a breakdown of 40 percent ACI stock and 60 percent cash. The stock portion would be tax-free to S1 shareholders.

"We believe that our premium stock and cash proposal is both financially and strategically superior to your proposed transaction with Fundtech," said Philip G. Heasley, ACI president and CEO, in a proposal letter to S1's Board of Directors.

Comment  | 
Print  | 
More Insights
Register for Bank Systems & Technology Newsletters
White Papers
Current Issue
Bank Systems & Technology Dec. 2, 2014
BS&T's 2014 Elite 8 executives are leading their banks to success, whether it involves leveraging the cloud, modernizing core systems, or transforming into digital enterprises.
Slideshows
Video
Bank Systems & Technology Radio
Archived Audio Interviews
Join Bank Systems & Technology Associate Editor Bryan Yurcan, and guests Karen Massey and Jerry Silva from IDC Financial Insights, for a conversation about the firm's 11th annual FinTech rankings.