Head Office: 40th Floor, 140 Broadway, New York City, NY 10005 US. Tel: +1 212 497 1820 (US), +44 (0) 207 588 1100 (London). Other Offices: Europe: London, Nottingham, Bangor (UK), Baden (Switzerland), Frankfurt. US: San Francisco, Salt Lake City, Burlington, Norcross, Las Vegas, Costa Mesa. International: Tel Aviv, Melbourne, Mumbai, Pune, Singapore, Tokyo. Website:
www.fundtech.com Twitter: @fundtech Founded: 1993. Ownership: Acquired by private equity company, GTCR, in September 2011. Number of staff: 1300. Number of clients: 1000+ including six of the top ten US banks and 26 of the top 50 banks worldwide. Principal partners: IBM, Sun Microsystems, Oracle, Systar, Accuity, Microsoft, Profile Software, Decillion Group, Zafin Labs. Payments products: Global PayPlus incorporating: High Care Payments, Mass Payments, Liquidity Management, SEPA (SCT and SDD), UK Faster Payments. Payments Integration Suite; PayPlus USA, PayPlus FTS, ACHplus, Bacsactive-IP, Global CASHplus Corporate Payments and Liquidity, Accountis E-Invoicing, Global Messaging Platform, Global Compliance Plus. Categories: Wholesale payments processing, retail payments processing, messaging, cash management, liquidity management, e-invoicing, Swift bureau.
58.6 per cent of Fundtech belonged to an Israeli business
group, IDB Holdings Corporation, through its investment subsidiary, Clal Industries and Investments (CII). IDB had been looking to shed its stake, worth $150-180 million, with Citigroup handling the deal. In Q1 2011, Fundtech reported revenues of $37.2 million ($33.4 million for the same period a year before), with the expectation that these would rise to $39.5 million in the next quarter. This was not the first time Fundtech had been an acquisition target: five years earlier, its US-based rival, ACI Worldwide (then called Transaction Systems Architects, or TSA), offered around $220 million. S1 was cited in the press at the time as another interested party. Neither deal transpired. ‘We know that Fundtech has been courted for a number of years by a variety of companies,’ said Dreyer. The situation this time was thrown into confusion in late
July when ACI issued a counter-offer to acquire S1, valuing S1 at $540 million, a 33 per cent premium on the company’s share price on the 25th July 2011. In early August, S1 rejected ACI’s offer and stated that it intended to press on with the merger with Fundtech. ACI then increased its original offer by 50 cents per share, but S1 stuck to its intention to merge with Fundtech. The merger, however, was not to be. GTCR, a Chicago-based private equity firm, offered $23.33 a share for Fundtech on 14th September 2011, resulting in the Fundtech board changing its recommendation from the S1 agreement. On 16th September 2011, S1 announced termination of Fundtech merger agreement and received an $11.9 million termination fee from Fundtech.
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GTCR said it would delist Fundtech and merge it with
Bankserv, a US-based payments systems supplier and GTCR- owned firm. The combined company said it would take the Fundtech name, with Ben Menachem at its helm. Bankserv was largely US-focused, for domestic payments and Swift. Its solutions were provided purely on a service model and it typically had smaller customers than Fundtech. George Ravich, EVP and head of marketing at Fundtech at the time (he left in 2013), referred to the benefits of going private. ‘This gives us breathing room to make some strategic investments away from the spotlight of Wall Street,’ he stated. The combination with Bankserv would also be larger than the rest of the acquisitions Fundtech had been through in the previous ten years put together. The company’s revenue was expected to jump from a projected $150 million for 2011 to $210 million. The fact that Bankserv had a mere 170 staff reflected the service model, without the large projects and customisation that typically comes with licence-based business. One aim was to market Fundtech’s solutions, including for cash management, to the Bankserv customers. Dave Kvederis, president and CEO of Bankserv, told IBS there was a little overlap in products (mostly around Fedwire processing) and, for the most part, there would be opportunities to cross-sell. Clal Industries Ltd offloaded Fundtech for only $390 million in
2011, however just four years later in March 2015, the firm has been sold to Canadian financial technology company D+H Corp for a remarkable $1.25 billion. The deal was closed in Q2 of fiscal 2015. The combined company boasts a base of 8000 clients - including eight of the top ten and 32 of the world’s top 50 banks.
Payment Systems & Suppliers Report |
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company details
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