The proposed merger, announced this week, of Norcross, Georgia-based S1 Corporation and Jersey City, N.J.-based Fundtech has been characterized as a merger of equals who have complementary strengths and similar corporate cultures. The companies say that, based on the stock price for both S1 and Fundtech at market close on June 24, the merger is valued at approximately $700 million.
Unfortunately, buried in the news that Fundtech, a N.J.-headquartered company with Israeli roots, is merging with S1 is the impact the merger will have on N.J. jobs. It has been decided that the combined company’s headquarters will be located in Atlanta, Ga. According to Manta, Fundtech employs 287 people in N.J. At this writing, Fundtech hadn’t responded to questions about how many N.J. jobs will be lost when the transaction closes.
S1 CEO Johann Dreyer said in a conference call that “over the last several years we’ve watched Fundtech move from an innovative startup to a global company,” and that he is very excited about the combined entity, which he says will provide leadership in transaction banking. The two companies have strengths in different segments of transaction banking and also in different geographical regions, and when combined will have customers among 15 of the top 20 banks worldwide and sales to all of the top 10 U.S. banks.
The sole senior management position eliminated because of duplication was that of S1 CFO Paul Parrish. The management team will consist of four members from each company, Fundtech CEO Reuven Ben Menachem said. The sales teams will be combined and reorganized so that all of the account execs and senior salespeople can sell everything the combined company has in its portfolio. One report stated that the merged company will keep Fundtech’s name.