If S1 Corporation (Nasdaq: SONE) cancels its merger with Fundtech Ltd. (Nasdaq: FNDT; TASE: FNDT) and merges with ACI Worldwide Inc. (Nasdaq: ACIW) instead, it will pay Fundtech $14.6 million, according to S1's proxy statement to shareholders ahead of the meeting to approve the Fundtech merger next months.
Both Fundtech and S1 develop software solutions for the financial industry. They announced their merger in share-swap deal in late June. Shortly afterwards, rival ACI made an offer to acquire S1, raising doubts about the Fundtech deal.
S1 discloses that ACI's offer did not come out of the blue after the announcement of the Fundtech merger, but that it had been in the picture throughout the negotiations. In August 2010, S1 CEO Johann Dreyer met ACI CEO Philip Heasley, who offered to acquire S1. Executives from the two companies later met and negotiations, which included financial advisors, continued for several months.
In November 2010, ACI made a formal offer at $8.40 per share for S1, and the companies signed a draft agreement a month late. However, in February, S1 made an about-turn, and decided to focus on its long-term business plan and its suspended contact with ACI.
Fundtech's share price fell 2.1% on Nasdaq yesterday to $15.08, giving a market cap of $236 million, and fell 1.4% by mid-afternoon on the TASE today to NIS 54.36.
Published by Globes [online], Israel business news - www.globes-online.com - on August 22, 2011
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