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Financial technology vendor S1 Corp.'s board of directors has rebuffed an unsolicited acquisition bid from rival ACI Worldwide Inc., signaling its commitment to an existing agreement it has to buy another competitor.
August 2 -
The payments technology vendor ACI Worldwide Inc. said Tuesday it submitted a bid to buy rival S1 Corp. for $540 million, aiming to thwart a separate deal S1 announced last month to merge with Fundtech Ltd.
July 26 -
Although they could in time reap benefits from the many back technology vendor mergers planned, banks may wait to make major IT spending decisions while the deals sort themselves out.
July 26
Payments technology vendor Fundtech Ltd.'s second-quarter revenue rose 16.4% from a year earlier to $40.5 million as it closed 130 new deals and added 14 new bank clients.
The Jersey City, N.J., company, which is engaged in a merger square-off with competing vendors S1 Corp. and ACI Worldwide Inc., said Wednesday its net income for the quarter was $2.1 million, or 13 cents per diluted share, down from $2.4 million, or 15 cents per diluted share, a year earlier. Excluding stock-based compensation costs, expenses related to a pending merger with S1 and other costs, Fundtech's earnings of 27 cents per diluted beat analysts' estimate of 26 cents per share.
The second quarter was "an especially strong quarter" for the company's payments messaging products, Reuven BenMenachem, Fundtech's chief executive, said in a press release.
The company raised its revenue guidance for the full year but lowered its earnings outlook due to costs related a merger agreement it and S1 announced in June. Fundtech now expects revenue to be between $160 million and $163 million compared with an earlier forecast of $155 million to $160 million. It expects diluted earnings per share in the range of 71 cents to 81 cents, down from a forecast of 76 cents to 86 cents.
Executives at S1, of Norcross, Ga., and Fundtech have said their combination, expected to close in the fourth quarter, would allow the companies to cross-sell each other's payments, online banking and cash management platforms while expanding into new regions. ACI, however, tried to thwart their combination last week by offering to buy S1 for $540 million.
S1 executives said Tuesday that the company's board of directors rejected ACI's bid and is committed to consummating the deal with Fundtech. ACI, of New York, said it was committed to seeing its offer through.
