ACI Makes Offer for S1
ACI Worldwide Inc. said Tuesday it is offering to buy S1 Corp. for $540 million, a deal the international provider of payment systems said is superior to Atlanta-based S1’s recently announced plans to merge with Fundtech.
ACI, with U.S. operations based in Elkhorn, Neb., sent a letter to the S1 board offering $9.50 a share in a cash-and-stock transaction valued at approximately $540 million, based on S1’s market price as of Monday. The stock portion of the deal would be tax free to S1 shareholders, ACI said.
Fundtech and S1 said their deal, announced July 18, was valued at approximately $700 million, a stock swap that would keep the combined operation based in Atlanta and keep Fundtech as the corporate name.
ACI’s president/CEO, Philip Heasley, said, “We are confident S1 shareholders will share our strong belief that ACI’s premium proposal is superior to and provides S1 shareholders with significantly greater value than the pending transaction with Fundtech. We expect S1’s Board to recognize the considerable financial and strategic benefits to S1 and its shareholders inherent in a combined ACI-S1, and ACI is ready and willing to complete this transaction and we are prepared to do what is necessary to make that happen.”
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.