Online Resources Rejects Takeover Offers

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“The Board of Directors determined that the completion of a transaction on acceptable terms was unlikely at this time and that the best course of action to achieve the highest shareholder value is to continue to aggressively pursue our long-term strategic growth plan,” said Joseph Cowan, president and chief executive officer of Online Resources. “We have identified clear objectives to re-focus and maximize our technology, products and organizational structure to drive revenue and earnings growth. We are bullish about the opportunities that lie ahead for Online Resources.”
The company’s shares surged almost 50% January 21 after Online Resources disclosed it was evaluating unsolicited merger offers. No suitors were ever identified but industry experts said the most likely candidates were Fiserv, Jack Henry & Associates and Western Union.

Meantime, Online Resources reported a $2 million loss for its fourth quarter, and a $4.2 million loss for its fiscal year. Fourth quarter revenues slid 1% to $37.8 million, while fiscal year revenues declined almost 2% to $149.5 million.CHANTILLY, Va. – Online Resources Corp. said this afternoon it has rejected potential takeover offers and will go it alone for the foreseeable future.

“The Board of Directors determined that the completion of a transaction on acceptable terms was unlikely at this time and that the best course of action to achieve the highest shareholder value is to continue to aggressively pursue our long-term strategic growth plan,” said Joseph Cowan, president and chief executive officer of Online Resources. “We have identified clear objectives to re-focus and maximize our technology, products and organizational structure to drive revenue and earnings growth. We are bullish about the opportunities that lie ahead for Online Resources.”

The company’s shares surged almost 50% January 21 after Online Resources disclosed it was evaluating unsolicited merger offers. No suitors were ever identified but industry experts said the most likely candidates were Fiserv, Jack Henry & Associates and Western Union.

Meantime, Online Resources reported a $2 million loss for its fourth quarter, and a $4.2 million loss for its fiscal year. Fourth quarter revenues slid 1% to $37.8 million, while fiscal year revenues declined almost 2% to $149.5 million.

 

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