S1 Corp. has accepted a sweetened takeover offer from ACI Worldwide after spurning ACI’s earlier bid, the company announced Oct. 3.
Under the agreement, ACI will pay $6.62 per share in cash and 0.1064 shares of its common stock to S1 shareholders, valuing the deal at $9.55 per share. ACI previously offered $6.20 per share in cash and 0.1064 in ACI shares per S1 share. The boards of directors of both companies have approved the transaction.
ACI and S1’s board have been involved in a pitched battle for control of S1 since July, when ACI launched its hostile bid for the rival vendor (
The new deal comes after S1's plans to merge with Israel’s Fundtech Ltd. were scotched when private equity fund GTCR topped S1's offer for Fundtech (see story). In mid-September, Fundtech ended a merger agreement with S1 when it agreed to be bought by private equity firm GTCR LLC, of Chicago (
ACI had offered to acquire S1 in July as S1 was preparing to finalize its Fundtech merger, but S1 rejected the offer, prompting ACI to launch a tender offer at $9 a share. ACI said last week just 20% of the S1 shares had been tendered under the offer.
ACI provides back-end payment processing and funds sourcing and trade software to more than 800 financial institutions, processors and retailers globally.
S1 specializes in front-end corporate, small business, and retail online and mobile banking products.
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