ACI Worldwide Inc (ACIW), electronic payment services provider, announced that it will buy Online Resources Corp (ORCC) in an all-cash deal with an equity value of about $126.6 million to expand its footprint in the online banking and bill payment sectors.
ACI Worldwide held a conference call on January 31, 2013, at 8:30 a.m. EST to discuss this information.
Philip Heasley, President and CEO of ACI Worldwide, said:
Built on our heritage of producing highly reliable and trusted solutions, ACI Worldwide’s mission is to deliver universal payment solutions that provide control, choice and flexibility to our customers while maintaining their peace of mind. Online Resources’ robust product set and talented employee base of online banking and payment experts is well-aligned with this focus and our desire to lead in a category undergoing accelerating change.
ACI Worldwide will pay $3.85 per Online Resources’ share. Based on 32.89 million shares outstanding, according to Reuters data, Online Resources’ equity is valued at about $126.6 million with a 83 percent premium to Online Resources’ closing stock price of $2.10 Wednesday on the Nasdaq.
Joe L. Cowan, President and Chief Executive Officer of Online Resources, commented:
I believe the combination of the two companies will allow the Online Resources product suite to now achieve its full potential in the Banking and Biller Markets, provide even better services and functionality for our clients and customers, and create additional opportunity for our dedicated and hardworking employees
Online Resources processes more than 245 million bill payment transactions annually. The company’s bill payment solutions connect more than 9,000 billers. The deal will broaden ACI Worldwide’s customer base with the addition of 1,000 banks, credit unions, billers, credit card issuers, and other credit and payment service providers & will be financed with a new $300 million term loan from Wells Fargo (WFC).