Atlanta-based S1 Corporation and Jersey City, N.J.-based Fundtech Ltd. today announced a merger between the two financial services technology providers.
The combined company will be called Fundtech, and will be based in Atlanta. Fundtech's cofounder and CEO Reuven Ben-Menachem will serve as executive chairman, and S1's Johann Dreyer will remain CEO.
"This merger will create an industry leader that provides a complete suite of technologically advanced transaction banking solutions,” Ben-Menachem said. "The S1 and Fundtech organizations and cultures are very similar in their commitment to deliver innovative products and generate the highest levels of customer satisfaction. The companies have complementary product offerings and extensive cross-selling opportunities which will position the combined company to secure larger contracts and cultivate more strategic relationships with customers."
Under the terms of stock-for-stock merger, S1 shareholders will own about 55 percent of the combined company, and Fundtech shareholders will hold about 45 percent. The combined company will have an eight-member board of directors with equal representation from both companies.
The merger expands the company's product portfolio and geographic footprint. S1 is a payments and financial services software provider with more than 3,000 clients in more than 75 countries. Fundtech provides transactional software and services, and has more than 1,000 financial institution clients in more than 70 countries.
"The future of the transaction banking industry is highly dependent upon innovation and state-of-the-art solutions and this combination will put us at the forefront of these advancements," Dreyer said. "Both companies have key strengths in technology, products, customers and culture, and we are extremely excited about the opportunities that will be created by combining these businesses. This merger will expand our geographic footprint and enhance our ability to accelerate revenue growth and increase profitability."
Fundtech and S1 expect to complete the transaction in the fourth quarter of 2011.