S1 Says 'Bound' to Fundtech Merger Despite ACI Offer
S1 Corp. said Wednesday that it will take a look at the takeover offer it got this week from ACI Worldwide but that its merger plans with Fundtech remain in force.
ACI, with U.S. operations based in Elkhorn, Neb., said Monday it was offering $9.50 a share in a cash-and-stock transaction valued at approximately $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.
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.
“S1’s Board of Directors will review the terms of the proposal submitted by ACI in a manner consistent with its obligations under the merger agreement with Fundtech and applicable Delaware law,” the Atlanta company said.
“S1 continues to be bound by the terms of the merger agreement with Fundtech,” the company said.
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.