It’s been a busy time for Fundtech Ltd. The Israel- and Jersey City-based provider of software and services to banks had agreed to merge with S1 Corp. in July, putting more than 270 N.J. jobs at risk. At the end of July, ACI Worldwide submitted a bid to buy Georgia-based S1, leaving some to wonder how the merger with Fundtech would be affected.
Last week a new buyer emerged for Fundtech. GTCR LLC, a Chicago-based private equity firm focused on investing in growth companies in the financial services sector, jumped into the fray with a “superior offer.” Fundtech then terminated its previously announced merger agreement with S1 and agreed to be acquired by GTCR.
After the Fundtech board approved the more lucrative offer, GTCR paid a termination fee of $11.9 million to S1. The transaction is expected to close during the fourth quarter of 2011. GTCR will be paying $23.33 per ordinary share, or about $390 million in the aggregate. Fundtech said the price per share represents a 32.9 percent premium to the closing price per ordinary share on Sept. 14.
If Fundtech had merged with S1, the combined company would have operated out of Atlanta. GTCR, however, says that it intends to combine Fundtech and BankServ, a GTCR portfolio company headquartered in Las Vegas, under the Fundtech umbrella, and that the combined company will remain in Jersey City.
Reuven Ben Menachem, founder and CEO of Fundtech Ltd., will serve as CEO of the newly combined company, Fundtech Inc. David Kvederis, founder and CEO of BankServ, will support the integration of BankServ and Fundtech as a member of Fundtech Inc.’s board of directors.