S1 Corp To Sell Regulatory Compliance Unit

ATLANTA -- S1 Corp. announced Monday it has agreed to sell its Financial Reporting Solutions division to private equity firms The Carlyle Group and Kennet Partners for $38 million in cash. FRS, based in Belgium, provides regulatory and compliance software to credit unions and other financial institutions. After fees, S1 expects to realize a gain of $30 million on the sale. S1, which reported a net loss of $2.1 million for its second quarter, has been fending off pressure from its largest shareholder, Ramius Capital Group, to sell the company or undertake some transaction to enhance shareholder value. The transaction did little to boost the company's share price, which closed at just $4.30 Tuesday.