Fundtech Ltd. (Nasdaq: FNDT; TASE: FNDT) founder and CEO Reuven Ben-Menachem will reap almost $12 million from the sale of the company to US private equity fund GTCR Fund X/A LP. According to a filing with US Securities and Exchange Commission (SEC) ahead of Fundtech's general shareholders meeting to approve the sale, Ben-Menachem will receive $1.52 million - $520,000 as a bonus and $1 million under his new contract and non-competition agreement.
Ben-Menachem will also make $10.3 million on the sale of his 2.9% stake in Fundtech. GTCR will merge Fundtech with portfolio company BankServ, and Ben-Menachem will run the merged company.
GTCR will acquire Fundtech for $388 million, after Fundtech abrogated its merger agreement with S1 Corporation (Nasdaq: SONE).
Other Fundtech executives will also receive handsome bonuses: president and COO Michael Sgroe will receive $440,000; CFO Yoram Bibring will receive $380,000; and VP marketing Joseph Mazzetti will receive $350,000.
Fundtech disclosed that it had received acquisition offers from at least four companies at $20-25 per share. GTCR originally offered $25 per share, before making the deal at $23.33, because of Fundtech's smaller cash reserves when the deal is closed. GTCR will also pay Fundtech's $11.9 million fine for cancelling the merger with S1.
Fundtech's share price opens at $22.97 on Nasdaq today, giving a market cap of $351 million, after falling 0.1% on the TASE today to NIS 86.12.
Published by Globes [online], Israel business news - www.globes-online.com - on October 5, 2011
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