OMAHA, Neb. - Transaction Systems Architects Inc., the parent company of ACI Worldwide, has announced plans to acquire P&H Solutions Inc. for $150 million. P&H provides Web-based enterprise-business banking solutions to financial institutions. The company has approximately 100 customers, including 12 of the top 25 U.S. banks. P&H customers include Sovereign Bank, TD Banknorth, Countrywide Bank, Merrill Lynch, First National Bank of Omaha, Wells Fargo, ABN AMRO, Citibank, Citizens Bank, JP Morgan Chase, and PNC Bank.
"This is a transformational event for TSA," said Philip G. Heasley, TSA's chief executive. "Last October we communicated our strategy to build a global solutions business providing payments software, domain expertise services in payments, and payments software as a service. This acquisition is a major step in the continuation of that strategy. With P&H, we now have management expertise in operating an enterprise business banking platform as well as the gold standard product suite in business banking, significantly strengthening our wholesale payments offering."
Subject to customary closing conditions and regulatory approvals, the acquisition is expected to close in September 2006.
According to a news release, TSA expects the P&H buyout to add between $40 million and $42 million to TSA's revenue during the 2006-2007 fiscal year, which ends Sept. 30, 2007.
The acquisition is expected to be financed by TSA and in part by a $150 million revolving credit facility provided by Wachovia Securities. Financial advisor Stephens Inc. and legal counsel Jones Day advised TSA on this transaction. William Blair & Company advised P&H Solutions, with Goodwin Proctor LLP as counsel.
"We have a great opportunity to grow P&H from its historical U.S. base into the international theater using our global distribution network," Heasley said. "The blending of our solutions will redefine the standard for end-to-end wholesale electronic payments and continue our progress toward the goal of payments convergence."
Heasley said the acquisition provides TSA with a platform for enterprise business banking capabilities that will support the company's Base24-es, Proactive Risk Manager, Payments Manager, Smart Chip Manager and Wholesale Payments System.
