Global PayPlus Finastra (Fundtech)
Overview
Fundtech is a long-standing player with its payment processing platform, Global PayPlus. It positions this for both high volume and high-value processing. It has a range of other offerings, including for cash management and Swift connectivity. As of November 2011, it has been owned by GTCR, a US-based private equity firm. The takeover saw Fundtech delisted and merged with Bankserv, a US- based payments systems supplier and GTCR-owned firm. Prior to this, Fundtech had entered into merger talks with S1 Corporation. The acquisition valued Fundtech at $390 million. Estimated revenues for 2011 were put at $210 million.
Strengths
• Longevity and focus, high level of R&D in flagship offering over the years.
• Well-rounded product set, with a range of complementary solutions and services.
• Large customer base, including tier one multi-site users.
Weaknesses
• Some over-running projects. • Competition from newer suppliers such as Clear2Pay and Dovetail.
• One or two areas of overlap with Bankserv.
Corporate overview
Incorporated in 1993, Fundtech grew to 16 offices under its own steam, ahead of the arrival of GTCR, and was a publicly traded company listed on Nasdaq (FNDT). In the early years of the new millennium, Fundtech went through some fairly difficult times, reflected in the fact that at one stage the company went twelve quarters without a positive bottom-line. The tide started to turn from 2004 onwards (albeit with a dip during the financial crisis), since when it consistently met its quarterly revenue and profit guidance, and claimed to have been one of the industry’s fastest growing companies. For the year ended 31st December 2010, its last as a listed company, revenues increased 20 per cent to $141.9 million from $117.8 million in 2009. GAAP net income in 2010 was $12.5 million, or $0.79 per diluted share, compared with net income of $4.7 million or $0.30 per diluted share, in 2009. In early June 2011, Fundtech ended rumours by announcing it was in talks with possible buyers. 13 days later came the announcement of a planned merger with S1 Corporation. The stock-swap arrangement would have seen Fundtech shareholders own 45 per cent of the new entity, and S1 shareholders 55 per cent. The transaction was expected to
close in Q4 2011, and the merger was expected to generate $12 million in savings by the end of 2012. This was going to be a ‘merger of equals’, said Reuven Ben Menachem, co-founder and CEO of Fundtech, in a press conference following the announcement.
S1 hitherto had a strong focus on branch systems and e-banking, for the retail and corporate sectors. Its position in e-banking was established with the acquisition of Mosaic Software and its Postilion suite of payments solutions in 2004. This offered a multi-channel platform for consumer-generated payments, to sit alongside other channel solutions in S1. It claimed more than 325 deployments of its payments solutions across 300 banks, card issuers, merchant acquirers, retailers and ATM deployers in 50 countries.
The new company was expected to be called Fundtech
Corporation and would assume headquarters where S1 was based, in Atlanta, Georgia. Fundtech has an existing presence there. It was stated that Ben Menachem would become executive chairman of Fundtech Corporation, and Johann Dreyer, CEO of S1, would become CEO of the combined entity. The board would be split equally between directors nominated by each. ‘We will have a suite that covers every type of transaction,’ stated Dreyer.
Payment Systems & Suppliers Report |
www.ibsintelligence.com 165
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124 |
Page 125 |
Page 126 |
Page 127 |
Page 128 |
Page 129 |
Page 130 |
Page 131 |
Page 132 |
Page 133 |
Page 134 |
Page 135 |
Page 136 |
Page 137 |
Page 138 |
Page 139 |
Page 140 |
Page 141 |
Page 142 |
Page 143 |
Page 144 |
Page 145 |
Page 146 |
Page 147 |
Page 148 |
Page 149 |
Page 150 |
Page 151 |
Page 152 |
Page 153 |
Page 154 |
Page 155 |
Page 156 |
Page 157 |
Page 158 |
Page 159 |
Page 160 |
Page 161 |
Page 162 |
Page 163 |
Page 164 |
Page 165 |
Page 166 |
Page 167 |
Page 168 |
Page 169 |
Page 170 |
Page 171 |
Page 172 |
Page 173 |
Page 174 |
Page 175 |
Page 176 |
Page 177 |
Page 178 |
Page 179 |
Page 180 |
Page 181 |
Page 182 |
Page 183 |
Page 184 |
Page 185 |
Page 186 |
Page 187 |
Page 188 |
Page 189 |
Page 190 |
Page 191 |
Page 192 |
Page 193 |
Page 194 |
Page 195 |
Page 196 |
Page 197 |
Page 198 |
Page 199 |
Page 200 |
Page 201 |
Page 202 |
Page 203 |
Page 204 |
Page 205 |
Page 206 |
Page 207 |
Page 208 |
Page 209 |
Page 210 |
Page 211 |
Page 212 |
Page 213 |
Page 214 |
Page 215 |
Page 216 |
Page 217 |
Page 218 |
Page 219 |
Page 220 |
Page 221 |
Page 222 |
Page 223 |
Page 224 |
Page 225 |
Page 226 |
Page 227 |
Page 228 |
Page 229 |
Page 230 |
Page 231 |
Page 232 |
Page 233 |
Page 234 |
Page 235 |
Page 236 |
Page 237 |
Page 238 |
Page 239 |
Page 240 |
Page 241 |
Page 242 |
Page 243 |
Page 244 |
Page 245 |
Page 246 |
Page 247 |
Page 248 |
Page 249 |
Page 250 |
Page 251 |
Page 252 |
Page 253 |
Page 254 |
Page 255 |
Page 256 |
Page 257 |
Page 258 |
Page 259 |
Page 260 |
Page 261 |
Page 262 |
Page 263 |
Page 264 |
Page 265 |
Page 266 |
Page 267 |
Page 268 |
Page 269 |
Page 270 |
Page 271 |
Page 272 |
Page 273 |
Page 274 |
Page 275 |
Page 276 |
Page 277 |
Page 278 |
Page 279 |
Page 280 |
Page 281 |
Page 282 |
Page 283 |
Page 284 |
Page 285 |
Page 286 |
Page 287 |
Page 288 |
Page 289 |
Page 290 |
Page 291 |
Page 292 |
Page 293
