Electronic payment services provider ACI Worldwide Inc (ACIW.O) said it will buy its peer, Online Resources Corp ORCC.O, 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 will buy Online Resources for $3.85 per share. Based on 32.89 million shares outstanding, according to Reuters data, Online Resources' equity is valued at about $126.6 million. The per share offer is an 83 percent premium to Online Resources' closing stock price of $2.10 Wednesday on the Nasdaq.
ACI Worldwide said the deal is valued at an enterprise value of about $263 million, which includes the redemption of Online Resources' preferred stock.
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.
Online Resources processes more than 245 million bill payment transactions annually. The company's bill payment solutions connect more than 9,000 billers.
For the last 12 months ending September 30, the companies combined generated pro forma revenue of about $860 million.
The deal is being financed with a new $300 million term loan. ACI Worldwide said it has received fully committed financing for the transaction from Wells Fargo (WFC.N).
(Reporting by Sakthi Prasad and Aditi Shrivastava in Bangalore; Editing by Matt Driskill)