Transaction banking solutions provider S1
Corporation has merged with rival Fundtech, in a deal worth
$700m.
The merged company will aim to utilise
transaction banking to accelerate revenue growth alongside
increasing margins and profitability, while using technology for
value-added services. Enhancing geographic footprint will also be
an intended goal of the deal.
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The new company will be called Fundtech and
based in Atlanta, US.
“The future of the transaction banking
industry is highly dependent on innovation and state-of-the-art
solutions,” said Johann Dreyer, CEO of S1 Corporation.
In the first quarter of 2011, the companies
generated a combined revenue of $95m, adjusted EBITDA of $10.4m and
net cash from operating activities of over $32m. The merger is
expected to result in annualised pre-tax cost savings of
approximately $12m by the end of 2012, and fully realisable in
2013.
“This merger will create an industry leader
that provides a complete suite of technologically advanced
transaction banking solutions,” said Reuven BenMenachem, CEO of
Fundtech.
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By GlobalDataSubject to approval by S1 and Fundtech
shareholders, regulatory approvals, Israeli court approval and the
satisfaction of customary closing conditions, the merger
transaction is expected to complete in the fourth quarter of
2011.
