Financial services software developer Fundtech Ltd. (Nasdaq: FNDT; TASE: FNDT) has cancelled its merger agreement with S1 Corporation (Nasdaq: SONE) and accepted the $390 million binding offer from private equity fund GTRC Fund X/A LP, which offered $23.33 per share in cash on Thursday, a 33% premium on Fundtech's closing price on Nasdaq the day before.
GTCR will merge Fundtech with its portfolio company BankServ Inc., a SaaS banking and payments solutions company, which it acquired in August.
Fundtech notified S1 that it will terminate the merger, and S1's board has accepted the termination. Fundtech will pay S1 $11.9 million for the cancellation, which GTCR has covered.
BankServ CEO David Kvederis said, "Fundtech's internationally recognized brand name and its dedication to a world-class product line will help us define the new standard for electronic payments systems. Joining forces with such a talented and well-regarded partner will let us deliver superior technology as well as a superior customer experience."
BankServ and Fundtech offer a full line of complementary banking platforms, including systems for wire transfers, SWIFT messaging, remote deposit capture, cash management, international payments, mobile payments and merchant services.
Fundtech will convene a shareholders' meeting in a few days to approve the acquisition by GTCR.
S1 announced that its board of directors has not changed its recommendation to reject the acquisition offer made by ACI Worldwide Inc. (Nasdaq: ACIW), which was announced after the merger agreement with Fundtech.
Fundtech's controlling shareholder, Clal Industries and Investments Ltd. (TASE: CII), a holding company of Nochi Dankner-controlled IDB Holding Corp. Ltd. (TASE:IDBH), will receive $205 million for its 58% stake in the company, and report a capital gain of NIS 412 million.
Fundtech's share price closed at $23.18 on Nasdaq on Friday, giving a market cap of $364 million, and fell 1.6% in early trading on the TASE today to NIS 83.
Published by Globes [online], Israel business news - www.globes-online.com - on September 18, 2011
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