ACI Buys S1 Corp.
After rejecting its initial bid this summer, S1 Corp. has agreed to be acquired by ACI Worldwide Inc., the electronic payments and online banking companies said.
The deal is a stock and cash blend for about $520 million based on ACI’s recent stock price. Both boards have approved the deal.
The price is a 42 cents per share increase from the offer ACI had made this summer when it launched a bid for S1 after that company had agreed to merge with Fundtech Ltd.
S1’s board rejected that ACI offer and said it remained committed to the Fundtech deal, which suddenly ended in mid-September when Fundtech instead was sold to a private equity firm in Chicago.
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 175 CUs.
ACI Worldwide has U.S. operations based in Elkhorn, Neb., and said it provides electronic payments to more than 800 financial institutions, retailers and processors globally and financial crime prevention solutions to more than 160 organizations.
The company said it manages more than $12 trillion a day in wholesale payments and more than 90 billion consumer payments a year.
“The combined company will have enhanced scale, breadth and additional capabilities, as well as a complementary suite of products that will better serve the entire spectrum of financial institutions, processors and retailers,” said Philip Heasley, president/CEO of ACI.
“With the significant improvements in the transaction terms and conditions, S1’s board of dDirectors unanimously concluded that combining with ACI is in the best interests of S1’s stockholders," said John Spiegel, chairman of S1.