Based on the terms of the transaction, the acquisition will be an all cash transaction for $8.35 per share, with an enterprise value of approximately $109m.
In order to execute the acquisition, the acquirer will start a cash tender offer to purchase all outstanding shares of common stock of Official Payments on or about 4 October 2013.
The transaction, which has been unanimously approved by the boards of directors of both companies, will boost the acquirer’s industry presence while providing significant growth opportunity.
Commenting on the acquisition, ACI Worldwide president and CEO Philip Heasley said that the transaction will enhance its position in growing EBPP space and expand its portfolio across key sectors.
Official Payments, which processes nearly 20 million payments and more than $9bn in volume annually, offers electronic bill payment services to state and local governments, municipal utilities, higher education institutions and charitable organizations.
In March 2013, the ACIW purchased Online Resources, an online banking and full service bill pay technology provider, in an all cash transaction for $3.85 per share, estimated at an enterprise value of nearly $263m.
It powers electronic payments and banking for more than 2,600 financial institutions, retailers and processors, while its software enables $13trn in payments each day.
