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S1 urges no action pending ACI takeover bid review

Wed, 08/31/2011 - 3:06pm
The Associated Press

S1 Corp., a payments software provider, on Wednesday urged its shareholders to take no action regarding an unsolicited takeover bid announced the previous day by payment systems company ACI Worldwide Inc.

S1 said its board will review the offer and advise its shareholders of its opinion by Sept. 13.

Under the terms of the offer announced Tuesday, S1 stockholders would receive $6.20 in cash and 0.1064 ACI shares for each S1 share. That values S1 at $9.38 per share based on ACI's closing stock price on Wednesday.

S1 shares rose 2 cents to close at $9.19 on Wednesday.

The offer is ACI's latest attempt to acquire S1 and convince S1 shareholders to vote against a proposal to instead merge with an Israeli company called Fundtech. In June, S1 announced plans to buy Fundtech for about $320 million in stock. Under the terms of that deal, each Fundtech stockholder would get 2.72 shares of S1's stock for each Fundtech share.

Earlier this month, S1 rejected a previous offer from ACI of about $540 million — or $9.50 per share — in cash and stock, saying the deal wasn't in the best interests of shareholders. A drop in ACI's shares since then reduced the value of that original proposal, leading ACI to boosted the cash component in its latest offer.

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