GLASTONBURY, Conn. - Open Solutions Inc. (NASDAQ: OPEN), a provider of integrated data processing technologies for banks and credit unions, has reached an agreement with Datawest Solutions Inc. (Datawest) (TSX: DS), a provider of core data processing and payment technology solutions in Canada.
Open Solutions intends to acquire all of the shares in the capital stock of Datawest for a total cash consideration of CDN$1.23 (U.S. 95 cents) per common share for 29.8 million common shares and CDN$2.60 (U.S. $2) per preferred share for 5 million preferred shares.
According to a news release, the transaction is expected to close in Open Solutions' fourth quarter.
While Open Solutions actively serves both the U.S. community banking and credit union industries, Datawest's core data processing business primarily serves the Canadian credit union marketplace. In addition, Datawest's payment business manages Canada's largest ATM network.
The acquisition will enable Open Solutions to expand its product offerings and market presence into the Canadian and international marketplaces, according to the release.
Open Solutions will operate Datawest through a wholly owned, newly-incorporated Canadian subsidiary; Datawest will continue to be located and operate its Banking Solutions data center in Vancouver and its Payment Solutions data center near Toronto.
