ACI Worldwide acquisition history

ACI's predecessor, Transaction Systems Architects, acquired substantially all of the assets of S2 Systems, a global provider of electronic-payments and network-connectivity software serving financial-services and retail customers. S2 carried a significant international footprint across the Middle East, Europe, Latin America and Asia/Pacific, with roughly half of its revenue from outside the United States. Purchase price was not disclosed in the annual report.

Transaction Systems Architects acquired the outstanding shares of eps Electronic Payment Systems AG, headquartered in Frankfurt, Germany, with operations across Germany, Romania, the United Kingdom and other European locations. The aggregate purchase price was $30.4 million, comprising $19.1 million in cash, 330,827 shares of common stock valued at $11.1 million, and direct acquisition costs. The deal closed in two stages, with an initial closing on May 31, 2006 and a second closing on October 31, 2006.

Transaction Systems Architects acquired P&H Solutions for an aggregate purchase price of approximately $134 million, of which roughly $73 million was financed with long-term debt. P&H provided web-based business and corporate banking solutions, extending the company's cash-management and online-banking capabilities for financial institutions. approximately $134 million.

Transaction Systems Architects acquired Visual Web Solutions, a provider of international trade-finance and web-based cash-management solutions serving financial institutions primarily in the Asia/Pacific region. Visual Web had sales and support offices in Singapore and a product-development facility in Bangalore, India. The aggregate purchase price, including direct costs, was $8.3 million, net of $1.1 million of cash acquired.

Transaction Systems Architects acquired Stratasoft, a Kuala Lumpur-based provider of mainframe-based payment systems for the Malaysian market and a long-time distributor of the company's OCM 24 product. The aggregate purchase price, including direct costs, was $2.5 million, net of $0.7 million of cash acquired.

ACI acquired S1 Corporation (Nasdaq: SONE), a rival payments and online-banking software provider, in a cash-and-stock transaction that valued S1 at a blended $9.55 per share as of September 30, 2011 (roughly $360 million in cash plus about 5.8 million ACI shares). S1 stockholders could elect $10.00 in cash or 0.3148 ACI shares per S1 share, subject to proration such that 66.2% of shares were exchanged for cash and 33.8% for stock. The deal followed a contested exchange-offer process and closed in February 2012, creating what ACI described as a full-service global leader in financial and payments solutions. approximately $360 million in cash plus 5.8 million ACI shares.

We are pleased to have reached this agreement with S1, and believe that together we will create a leader in the global enterprise payments industry. The combined company will have enhanced scale, breadth and additional capabilities, as well as a complementary suite of products that will better serve the entire spectrum of financial institutions, processors and retailers.Philip G. Heasley — President and CEO, ACI Worldwide

With the significant improvements in the transaction terms and conditions, S1's Board of Directors unanimously concluded that combining with ACI is in the best interests of S1's stockholders, as it provides a substantial premium for their investment and the opportunity to participate further in this powerful combination.John W. Spiegel — Chairman of the Board, S1 Corporation

ACI acquired Online Resources Corporation (ORCC) through a cash tender offer, paying $3.85 per common share (about $132.9 million) plus $127.2 million for the Series A-1 Convertible Preferred Stock, for a total purchase price of $260.1 million. ORCC was a leading provider of online banking and full-service bill-pay solutions, and the deal added electronic bill presentment and payment (EBPP) as a strategic pillar of ACI's Universal Payments portfolio while deepening its reach among community banks and credit unions.

ACI acquired 100% of Profesionales en Transacciones Electronicas S.A. in Venezuela (PTESA-V) and Ecuador (PTESA-E), plus the ACI-related assets of the Colombia entity (PTESA-C), for a purchase price of approximately $14 million. PTESA had been a long-term ACI partner providing sales, service and support to customers across South America.

ACI acquired Official Payments Holdings (Nasdaq: OPAY) via an all-cash tender offer at $8.35 per share, valuing the company at an enterprise value of approximately $109 million. Norcross, Georgia-based Official Payments was a leading electronic bill-payment provider serving federal, state and local governments, municipal utilities, higher-education institutions and charitable-giving organizations, with more than 3,000 customers, roughly 20 million payments and over $9 billion in volume processed annually. approximately $109 million (enterprise value; $8.35 per share).

Official Payments' proven team, loyal user base and vertical expertise make it an ideal match for ACI. The acquisition will further extend ACI's leadership in the fast-growing EBPP space, expanding our portfolio across key sectors including federal, state and local governments, municipal utilities, higher education institutions and charitable giving organizations.Philip Heasley — President and CEO, ACI Worldwide

This acquisition marks the next step in the evolution of electronic bill payments, an industry in which ACI Worldwide is at the forefront. I'm excited about integrating Official Payments into the broader ACI Universal Payments strategy and portfolio.Alex Hart — CEO, Official Payments

ACI acquired Retail Decisions (Retail Decisions Europe Limited and Retail Decisions, Inc.), a leader in payments fraud-prevention and eCommerce risk management, for an all-cash purchase price of $205 million. Brookwood, England-based ReD served more than 1,500 retailers, issuers, acquirers, processors and switch networks globally, bringing consortium fraud models, business-intelligence and analytics capabilities to ACI's fraud portfolio just as EMV migration was pushing more fraud into card-not-present channels.

With the acquisition of ReD, ACI becomes the undisputed payments risk management leader across multiple segments globally - issuers, merchant acquirers, retailers and commercial banks. This marks a major milestone in our Universal Payments strategy to enable true real-time, any-to-any transactions.Philip Heasley — President and CEO, ACI Worldwide

We're excited to become part of ACI; the breadth and depth of its portfolio and UP value proposition are unmatched in the industry. Together with ACI, retailers, processors and acquirers around the world are now better able to address the enormous ecommerce disruption opportunity.Paul Stanley — CEO, Retail Decisions (ReD)

ACI acquired 100% of the equity of PAY.ON, a Munich, Germany-based leader in eCommerce payments-gateway solutions, for $186.4 million in cash and stock (funded largely with about $181.0 million drawn from ACI's revolving credit facility). PAY.ON's SaaS gateway provided global connectivity to more than 300 alternative payment methods and card acquirers across 160-plus countries, strengthening ACI's position in omni-channel and cross-border eCommerce payments. ACI's investor materials described the transaction at approximately EUR 180 million, split roughly 92% cash and 8% ACI shares. $186.4 million (cash and stock).

ACI acquired Speedpay - Western Union's U.S. domestic bill-pay business (E Commerce Group Products, Inc. and its subsidiary Speedpay, Inc.) - in an all-cash transaction announced at $750 million (allocated at roughly $754 million in ACI's FY2019 10-K, subject to customary adjustments). The deal roughly doubled ACI's bill-pay reach, bringing the combined ACI/Speedpay solutions to more than 4,000 U.S. customers across consumer finance, insurance, healthcare, higher education, utilities, government and mortgage, and adding meaningful scale to ACI's On Demand segment. Speedpay generated more than $350 million in revenue and $90 million in adjusted EBITDA in 2018.

This acquisition reinforces ACI's 'any payment, every possibility' vision and accelerates our ability to capitalize on the growing global payment transaction opportunity over the next five years. It presents a great opportunity for ACI to strengthen and add scale to our On Demand business.Phil Heasley — President and CEO, ACI Worldwide

Divesting the Speedpay business allows us to concentrate our resources on our cross-border money movement strategies and monetize a non-core asset for our shareholders.Hikmet Ersek — President and CEO, The Western Union Company

On the same day it closed Speedpay, ACI completed the acquisition of Walletron, which provides patented mobile-wallet bill-presentment technology. ACI described the acquired financial results as not material and did not disclose the purchase price.

ACI acquired certain technology assets of RevChip, LLC and TranSend Integrated Technologies Inc. for a combined $7.0 million. Because substantially all of the value was in developed technology, ACI recognized the transaction as an asset acquisition rather than a business combination. $7.0 million (combined).