S1 Corp. Pursued In New Deal

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NEW YORK– ACI Worldwide announced this morning it has offered to acquire S1 Corp., which could scotch a month-old merger of S1 and Fundtech.

ACI's offer of $9.50 per share in cash and stock, or $540 million, represents a 33% premium to S1's closing stock price of $7.13 on Monday and a 23% premium to the company's 52-week high of $7.75. Once the deal is completed, S1 shareholders would own about 15% of the combined company and ACI shareholders would own about 85%

The deal comes just four weeks after S1, a provider of payments and software solutions to more than 3,000 financial institutions, agreed to merge with Fundtech, an Israeli provider of software and services to credit unions and banks, resulting in S1 owning 55% of the combined company. But ACI officials said their deal was superior to the Fundtech merger.

"With S1, we believe that ACI would further enhance its current position as a global leader in the enterprise payments software industry as a larger, more diversified company that is strongly positioned in a wide range of markets and supported by a broader base of revenues and earnings," said ACI President and Chief Executive Philip Heasley.

Heasley said the addition of S1 would expand the services ACI can offer its customers and allow it to compete more effectively and profitably on a global basis.

 

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