S1 Corp and Fundtech Plan to Merge
Online banking and financial services software and supply chain specialists S1 Corp. and Fundtech Ltd. are merging in a stock swap valued at approximately $700 million.
S1 is an Atlanta-based provider of online banking and payments software with more than 3,000 clients worldwide. It also is owner of PM Systems Corp., a South Carolina-based provider of online banking and security services to about 175 credit unions.
Fundtech is an Israeli company with U.S. operations based in Jersey City, N.J., and said it has a client list of more than 1,000 companies worldwide using its wire transfers, ACH origination, cross-border payments and remittance. Fundtech said it also operates the world’s largest SWIFT service bureau.
When the transaction closes, S1 shareholders will own approximately 55% of the company and Fundtech shareholders about 45%, the companies said. The two companies had combined revenue of $95 million in the first quarter and no debt, they said.
Fundtech will be the name of the combined companies. Fundtech’s Reuven BenMenachem will be executive chairman and S1’s Johann Dreyer will be CEO, they said. Atlanta will be corporate headquarters.
“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. “This merger will expand our geographic footprint and enhance our ability to accelerate revenue growth and increase profitability.”