Payment-systems provider ACI Worldwide Inc. reached a definitive deal worth $520 million in cash and stock to acquire S1 Corp., more than two months after first launching a bid for the e-commerce company.
A takeover of S1 would boost ACI's presence in the enterprise payment software industry.
The deal, which has been approved by the boards of both companies, will pay S1 holders $9.55 a share, a 4.1% premium over Friday's close and about a 35% over the company's July trading price before the first bid was unveiled. The offer is worth $6.62 a share in cash and 0.1064 share of ACI, marking an increase in the cash portion of 42 cents a share over ACI's previous bid.
The merger, which is expected to add to earnings in 2012, is also expected to lead to cost synergies of about $30 million a year.
Analysts have said S1's strengths include debit-card payments and the front-end aspects of cash management, which include user interface and experience. S1 has strong positions in Latin America and Africa.
Shares of both companies were inactive in premarket trade.
