US fintech solutions provider Computer Services Inc (CSI) is to be acquired by private investment firms Centerbridge and Bridgeport in an all-cash deal worth $1.6 billion.
CSI acquired for $1.6bn
CSI offers core processing, digital banking, managed cybersecurity, payments processing and regulatory compliance solutions to financial institutions.
The firm’s shareholders are set to receive $58 per share in cash upon closing of the deal, which is expected to take place in Q4 2022, representing a 53% bump to CSI’s closing stock price on 19 August.
The transaction was unanimously approved by CSI’s board of directors and founder John Williams. Williams, who founded CSI 60 years ago, says the deal represents good value for shareholders.
“In addition, I believe that our customers, employees and communities can rest assured that – based on their history – current management, Centerbridge and Bridgeport will continue CSI’s legacy,” he adds.
CSI will become a privately listed company and board chair Steve Powless says that post-acquisition, the company “intends to continue operating under the leadership of CEO David Culbertson and the CSI leadership team, with its headquarters expected to remain in Paducah, Kentucky”.
Culbertson adds that following the deal, CSI intends to “expand and diversify” its product offerings and “leverage the scale and resiliency of the public cloud and deploy optimised fintech and regtech solutions through our open banking and banking-as-a-service (BaaS) initiatives”.
