ACI Worldwide proposes to acquire S1 Corp

NEW YORK: ACI Worldwide Inc, which makes e-payment processing software, said it proposed to buy financial services provider S1 Corp, a provider of integrated financial services, for about $540 million in cash and stock, potentially derailing S1's planned buy of Fundtech.

ACI's offer comes a month after S1 Corp agreed to acquire Tel Aviv-based Fundtech for about $700 million in stock.

“We are confident S1 shareholders will share our strong belief that ACI's premium proposal is superior to and provides S1 shareholders with significantly greater value than the pending transaction with Fundtech,” ACI CEO Philip Heasley said in a statement.

ACI has offered $9.50 per S1 share, a premium of 33 per cent to S1's stock close on Monday, and said the consideration in the proposal consists of 40 per cent in ACI stock and 60 percent in cash.

It expects the transaction to add to its full-year earnings in 2012.

ACI said the proposed transaction is not subject to any financing condition, and it has secured committed financing from Wells Fargo Bank for the cash portion of the transaction.

Separately, ACI Worldwide reported a quarterly profit, and raised its full year outlook.

Shares of S1 were up almost 32 per cent at $9.40 in pre-market trade while Fundtech's shares were down 4 per cent.