NORCROSS, Ga. – S1 Corp announced this morning it is terminating its merger agreement with Fundtech in the face of the better offer for the Israeli financial services provider, but won’t walk away cheaply, with Fundtech paying it an $11.9 million break-up fee for termination of the merger.
But S1, which provides financial services for 3,000 credit unions and banks, said it still opposes the takeover offer for it from ACI Worlwide and will continue to urge shareholders not to tender their stock to ACI’s $10-a-share offer.
The move clears the way for Fundtech to be acquired by private equity firm GTCR for $23.33-a-share and combine Fundtech with its Bankserv unit. Fundtech announced this morning it has agreed to accept the GTCR offer.
S1 said its board has “serious, unaddressed concerns” regarding the ACI exchange offer, including potential antitrust issues, the fact it is not tax free and the ability of ACI to fund the $568 million bid.
