Stock Alert for S1 Corp. (SONE)
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    Stock on Fire – S1 Corp. jumps on $540 Million Bid

    Stock on Fire – S1 Corp. jumps on $540 Million Bid

    Shares of financial-services software provider S1 Corp. (NASDAQ: SONE) surged 32.3% to a record $9.43 as volume swelled to more than 33.40 million shares, about 114 times the 10-day average. The move was spurred by news that it received an offer to be bought for $540 million by payment software company ACI Worldwide Inc. (NASDAQ: ACIW).  The offer values S1 at $9.50 a share, a 33% premium to the stock’s closing price of $7.13 on Monday.  

    Under the proposal, S1 shareholders can choose to receive cash and/or stock for their shares, under the condition that 40% of the consideration is paid in ACI shares and 60% is paid in cash.  Assuming the deal is completed, S1 shareholders would hold 15% of the combined company, while the rest would be owned by ACI shareholders.

    ACI CEO Philip G. Heasley stated that his company is confident S1 shareholders will share ACI’s belief that the proposal is superior and provides them with substantially greater value than the pending transaction with Fundtech. S1 announced in June that it has agreed to acquire Israel’s Fundtech for about $700 million in an all-stock deal. In a letter to S1’s board, ACI stated that its proposal is being made in accordance with the ‘superior offer’ provisions in S1’s merger agreement with Fundtech.

    With ACI and S1’s complementary products and customer bases, ACI believes that a combined firm would provide a rich set of capabilities and a broad portfolio of products to customers across the entire electronic payments spectrum, while taking advantage of a leveraged global cost structure and reduced fixed infrastructure.

    S1 shares closed Tuesday at $9.26, up 29.87% from the prior day’s closing price. ACI shares added $1.98, or 5.55%, to close at $37.98.

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