D+H chief executive officer Gerrard Schmid said: "The acquisition of Fundtech puts D+H at the forefront of these trends globally, providing us with a market-leading software platform with established scale in mission-critical payment technology.
"It also delivers capabilities that are relevant to our existing customer base in Canada and the U.S. while making D+H more relevant to global financial institutions and large U.S. banks."
The acquisition is expected to result in pro forma 2014 adjusted revenues of about $1.45bn; pro forma 2014 adjusted EBITDA of $428m; and attractive medium-term synergies through cross-selling opportunities and cost savings.
According to Fundtech, the combination of both the companies may generate combined cash flow that will enable deleveraging, support dividend payments, and fund investment for future growth.
Fundtech president and chief operating officer Ed Ho said: "We have made significant investments in our platforms over the last several years to build competitive, best-of-breed solutions, and we have seen great momentum as a result.
"Given the complementary nature of our solutions, there is an opportunity for Fundtech to leverage D+H’s established client base to continue to drive growth."
With the transaction, D+H will be able to further bolster its value proposition with relevant technology solutions that provide it with access to new markets and geographies.
D+H and Fundtech will have a combined base of about 8,000 clients worldwide and a comprehensive portfolio of new technology solutions and capabilities.
The acquisition, which is set to close during the second quarter of fiscal 2015, is subject to approval under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 in the US and other customary conditions.
Fundtech provides financial technology to banks and corporations of all sizes in the Americas, EMEA, and APAC regions.
The company, which was acquired by private equity firm GTCR in 2011, offers transaction banking solutions including global and domestic payments solutions, financial messaging, corporate cash and liquidity management and merchant services.
Image: The deal will enable D+H to further bolster its value proposition with relevant technology solutions. Photo: courtesy of adamr/FreeDigitalPhotos.net
