S1 Rejects ACI Worldwide Bid
ATLANTA – S1 Corp. yesterday acknowledged a bid from ACI Worldwide but said it is bound by its previous merger agreement with FundTech Ltd., apparently rejecting the higher offer.
The statement by S1 came hours after ACI made public its offer to acquire S1 for a combination of stock and cash valued at $9.50 a share, or $540 million.
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. S1 said it continues to be bound by the terms of the merger agreement with Fundtech.
S1 shares surged 30% yesterday after the news of the ACI offer, closing at $9.26, near a 52-week high.
S1 said its board will review the terms of the proposal submitted by ACI “in a manner consistent with its obligations under the merger agreement with Fundtech and applicable Delaware law.”