U.S. Fair Isaac buys London Bridge

LONDON: U.S. software firm Fair Isaac Corp has agreed to buy Britain's London Bridge for 166.2 million pounds ($295 million) to boost its offering to the financial services industry, the two firms informed.

Fair Isaac, which designs credit card scoring systems for credit card companies and other lenders, said it would pay 95 pence per share in cash for each London Bridge share, a 54 percent premium to Friday's closing price.

"In the U.S. market, the acquisition of London Bridge will reinforce Fair Isaac's position as a leading provider of mission-critical design management solutions to the financial services industry. It also enhances Fair Isaac's ability to serve global financial institutions in the UK, continental Europe and Asia," the U.S. firm said in a statement.

London Bridge made a profit before tax and goodwill of 4.1 million pounds in 2003 and said earlier this year it had won a contract to provide its Debt Manager software to the UK government's Department of Works and Pensions.

Fair Isaac said it had received irrevocable undertakings in support of its offer from London Bridge directors, who together own about 46.2 percent of the British firm's shares.

Hawkpoint is advising Fair Isaac, while Investec Investment Banking is acting for London Bridge.