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S1 Mails Proxy Materials for Fundtech Merger

S1 execs say that a merger with Fundtech will benefit stockholders, while a merger with ACI Worldwide could destroy stockholder value.

Atlanta-based S1 Corporation, a provider of payment, online banking and branch banking solutions worldwide, announced that it has filed and will begin to mail proxy materials related to its proposed merger with Jersey City, N.J.-based Fundtech. The materials are for the special meeting of stockholders on Sept. 22 during which they will vote on proposals related to the merger.

Included in the proxy materials is a letter to S1 stockholders outlining the value that the proposed merger is expected create for S1 stockholders, including increased revenues and cash flow. "We believe the S1/Fundtech combination is a compelling transaction for S1 stockholders and that the continued execution of S1's long-term strategic plan, which includes the business combination with Fundtech, will create significant stockholder value," the letter states. "The combined company will have a strong platform to accelerate revenue growth and the ability to significantly increase profitability."

The letter also addresses the unsolicited proposal from New York-based international payments systems provider ACI Worldwide that took place on July 26: "S1's Board of Directors, in consultation with its financial and legal advisors, carefully considered this proposal and determined that ACI's proposal is not in the best interests of S1 and its stockholders," states the letter. "The Board unanimously rejected ACI's proposal and also affirmed its commitment to S1's combination with Fundtech."

To read the letter in its entirety, visit S1's website.

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