Just three months after it was initially announced, ACI Worldwide has now confirmed that the divestiture of its corporate online banking solutions to One Equity Partners (OEP) has been completed.
ACI Digital Business Banking is ACI’s technology platform that provides solutions for commercial and business banking customers through an API-driven interface.
OEP, a private equity firm, has now purchased the platform in a deal thought to be worth around $100million.
It is believed the OEP paid this value in cash.
The sale includes customer contracts, technology assets and intellectual property. The employees dedicated to these solutions have transitioned to the new company.
As companies develop, often they can discover that they have dabbled in too many lines of business, and so, to remain profitable, the company might seek to sell or exchange some or all of its assets in what’s known as a divestiture.
In an official statement, Odilon Almeida, president and CEO of ACI Worldwide, confirmed that the divestiture of its platform was to “maximise shareholder value.”
Elaborating on this, Almeida predicted that the divestiture would “enhance our growth rates and provide additional flexibility to invest in growth and return capital to shareholders through share repurchases.”
The divestiture will afford ACI a greater focus on its faster-growing core business lines while procuring cash for future investments.
“Our core business is resilient in a turbulent environment. This divestiture improves our growth profile and facilitates our progress towards achieving our targeted seven per cent to nine per cent revenue growth by 2024,” Almeida concluded.
The company has repurchased 2.7 million shares for $80million year-to-date through 31 August 2022, with $136million remaining on its share repurchase authorisation.
ACI has confirmed that it is adjusting its full-year and third quarter 2022 guidance to reflect the online banking solutions divesture.
Image and article originally from thefintechtimes.com. Read the original article here.