eFunds Shares Rise in Takeover Speculation

SCOTTSDALE, Ariz. – Shares in EFD, the funds processor formerly known as eFunds, rose almost 4% yesterday after the company announced it is exploring various strategic alternatives, including a merger. The company reported yesterday that net income declined slightly in its first quarter and the company has hired investment bankers to explore possible strategic alternatives. The processor for the credit unions’ CO-OP Financial Services said net income for the period was $10.5 million, or 22 cents a share, compared to $10.7 million, or 23 cents a share, for the first quarter last year, as revenues declined 4% to $134 million. EFD said it has formed a review committee of its board and hired Goldman, Sachs & Co. and BlackRock Inc. to explore strategic options, after being approached by certain parties. EFD shares closed at $39.91 yesterday.