A Chicago equity firm will buy Fundtech for $388 million,apparently putting an end to the global payments technologyprovider's merger agreement with S1 Corp.

Fundtech, an Israeli company with U.S. headquarters in JerseyCity, N.J., will have to pay a $12 million breakup fee to S1,according to their earlier agreement.

Atlanta-based S1, an online banking and payments provider, saidit has five days to consider making a counter proposal and is“currently reviewing its options.”

ACI Worldwide of Elkhorn, Neb., had launched its own hostiletakeover bid for S1, raising its stake to an estimated $540million.

Clal Industries, controlling shareholder of Fundtech, said ithas accepted the offer from GTCR Fund in Chicago, which said itwould merge that operation with its BankServ property and keep itbased in Jersey City. BankServ had earlier acquired NetDeposit fromZions Bancorp.

S1 isan Atlanta-based provider of online banking and payments softwarewith more than 3,000 clients worldwide. It also is owner of PMSystems Corp., a South Carolina-based provider of online bankingand security services to about 175 credit unions.

Fundtech is an Israeli company with U.S. operations based inJersey City, N.J., and said it has a client list of more than 1,000companies worldwide using its wire transfers, ACH origination,cross-border payments and remittance. Fundtech said it alsooperates the world's largest SWIFT service bureau.

S1 isa provider of online banking and payments software to more than3,000 clients worldwide. It also is owner of PM Systems Corp., aSouth Carolina-based provider of online banking and securityservices to about 175 credit unions.

Fundtech said it has a client list of more than 1,000 companiesworldwide using its wire transfers, ACH origination, cross-borderpayments and remittance. Fundtech said it also operates the world'slargest SWIFT service bureau.