S1 Re-Commits To Fundtech Deal
ATLANTA – S1 Corp. on Monday reinforced its commitment to its planned merger with Fundtech as it reported strong second quarter financials for its fiscal second quarter.
The provider of back-office services for credit unions and banks, and the subject of a competing takeover offer from ACI Worldwide, reported it broke into the black for the second quarter to the tune of $1.5 million, fueled by a 22% surge in revenues, to $63.3 million. That compares to a $1.8 million loss for the second quarter last year.
As a result, S1, which claims business relationships with 3,000 financial institutions globally, had an 18% increase in revenues for the first six months of the year, to $121.2 million, and a net of $2.2 million, compared to a $2.8 million loss for the first half last year.
But S1, which received a $540 million takeover offer from ACI last week, said it intends to go forward with the planned merger with Israel’s Fundtech, after which S1 will be the surviving entity. The merger, said S1, is expected to close in the fourth quarter of 2011 and is subject to approval by S1 and Fundtech shareholders, receipt of regulatory and court approvals, and the satisfaction of customary closing conditions.
S1 said its Board rejected ACI Worldwide's proposal, after it consulted with its legal and financial advisors and affirmed its commitment to the Fundtech deal.