US financial software vendor Open Solutions has signed a definitive agreement to acquire Fincentric Corporation, a Canadian-based provider of core retail banking technology. Terms of the deal were not disclosed.
Established in 1984 British Columbia-based Fincentric provides technology to around 167 clients worldwide and claims a 50% market share of the top 25 credit unions in Canada.
Open Solutions says the Fincentric unit will become part of its Canadian division, which is headed by president Blair Goulet. Fincentric will continue to operate from its location just outside of Vancouver in Richmond, British Columbia.
Commenting on the acquisition, Robert Nygren, Fincentric president and CEO, says: "Becoming part of Open Solutions will provide Fincentric with an excellent opportunity to continue our success in providing innovative solutions to the financial services marketplace."
The acquisition, which is subject to final approval by Fincentric's shareholders, is expected to close within the next 30 - 45 days.
In October last year Connecticut-based Open Solutions agreed to be acquired by private equity firms Carlyle Group and Providence Equity Partners in a deal worth over $1.3 billion. The buyout completed in January 2007.