US electronic payments outfit Transaction Systems Architects (TSA) has signed a definitive agreement to acquire substantially all of the assets of Texas-based e-payments software vendor S2 Systems.
Under the terms of the agreement, TSA will acquire substantially all of the assets of S2 Systems for $35 million in cash, subject to certain holdbacks and earn-out payments.
S2 Systems is a global provider of electronic payments and network connectivity software with significant presence in Europe, Middle East and Asia-Pacific. The vendor has more than 120 active customers and generates nearly half of its revenue from international markets.
Philip Heasley, CEO, TSA, says: "We believe this acquisition will enable us to leverage our combined expertise and strengthen our leadership position in the growing payments industry. The S2 acquisition will expand our presence in important markets and improve our cross-sell opportunities to customers around the globe."
The deal, which has been approved by the boards of directors of both companies, is expected to close in late July 2005.
TSA says upon closing, Lynn Holland, S2 System's chief technical officer, is expected to serve as vice president of its ACI Worldwide subsidiary.
S2 facilities in England and Australia will be integrated into ACI Worldwide offices, while other acquired locations will increase TSA's presence in the Middle East and US.