Oppenheimer & Co. released a note on Fundtech Ltd. (Nasdaq: FNDT; TASE: FNDT) of the IDB group, commenting on the bid from private equity firm GTCR, saying that "the offer to purchase is nearer the logical value of the stock, and could benefit the company's activity more than the mooted merger with S1, which has encountered difficulties."
GTCR is offering $23.33 per Fundtech share, representing a 33% premium on the current market price.
"The acquisition bid could set the Israeli company in a new direction of growth," Oppenheimer says. "It could turn the merged company into a leading player in financial software," the analysts write, adding that Fundtech has been an especially attractive acquisition target for years.
GTCR intends to merge Fundtech with bankServ, one of it portfolio companies, and thus create a world leader in software services to financial institutions. Assuming that the deal goes ahead, IDB unit Clal Industries will receive $205 million for its stake in Fundtech, and post a NIS 412 million gain. The gain will depend on the dollar exchange rate and Fundtech's shareholders' equity on the closing date.
Published by Globes [online], Israel business news - www.globes-online.com - on September 15, 2011
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