S1 Corp, a US-based provider of financial services software solutions yesterday rejected ACI Worldwide's $540 million cash-and-stock takeover proposal and instead decided to go ahead with its proposed acquisition of Israel's Fundtech Ltd.
S1 Corp said that its board of directors, ''after thorough consideration and consultation with its legal and financial advisors, has rejected ACI Worldwide previously announced proposal to acquire S1. The board unanimously concluded that pursuing discussions with ACI at this time is not in the best financial or strategic interests of S1 and its stockholders. In doing so, the board affirmed its commitment to S1's pending business combination with Fundtech.''
Responding to S1 Corp's rejection, New York- based ACI said in a statement that it still believes its $9.50-per-share cash-and-stock bid is superior to the Fundtech transaction and is "prepared to do what is necessary to make this deal happen. ACI remains ready and willing to complete this transaction."
In June, Atlanta, Georgia-based S1, a leading global provider of payments and financial services software solutions to more than 3,000 financial institutions in more than 75 countries had offered to buy Tel-Aviv-based Fundtech, a provider of software and services, in a stock deal valued at about $700 million. (See: US financial software firm S1 Corp to buy Israel's Fundtech for $700 mn)
A month later, ACI launched a $540 million cash-and-stock for S1 Corp to expand its position as the leading provider of the most unified payments solution to serve retail banking, wholesale banking, processors and retailers. (See: Banking software provider ACI to acquire S1 Corp for $540 million)
ACI provides electronic payments software to more than 800 financial institutions, retailers and processors around the world. On an average, ACI claims that its software manages more than $12 trillion in wholesale payments for more than 160 organisations worldwide daily.