Fundtech and S1 look to merge
Asia Pacific CEO believes Asia will provide one-third of their total company revenue in a few years. July 08, 2011 | Nadir AhmadThe proposed merger of Atlanta-based S1 Corporation, which had 2010 revenues of $209 million, and Jersey City-based Fundtech, which had 2009 revenues of $118 million, announced on 27 June 2011, will look to create better offerings across key business lines such as payments and cash management. The synergy is seeking to take the lion’s share of the payments industry which according to Boston Consulting Group estimates, posted revenues of $805 billion in 2008. The merged company will see a combined 2011 sales of $392 million and market capitalization of $700 million. The Asian Banker recently spoke with Gil Gadot, president of Fundtech Asia-Pacific, on the challenges and opportunities facing both organizations as the merger moves forward.“This type of merger is seeks to leverage on the strengths of each institution,” Gadot reiterated. Apart from the merger positively impacting the bottom line, Gadot also noted the both organizations were customer-centric and driven by innovation. Gadot was also pleased with the level of overlap between S1 and Fundtech, seeing additional value in allowing employees from both companies to keep operating in the business lines that are familiar to them when working in the new organization. “I can see electronic banking and cash management strengthening right away because the synergy is very easy,” Gadot says. An eventual integrated solution will also benefit customers. “More banks want to buy an integrated solution. They want to know that, when they deploy in a country, they have a solution that covers all their transaction banking needs,” he mentioned. Gadot sees Asia Pacific as an important component of future business. “We are experiencing the greatest growth in Asia and we are winning business here.” he said. He noted that the S1 and Fundtech hubs in Asia are aligned, with both companies running operations out of Melbourne and Singapore. The merger will also allow the new company potential access... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: Mergers and Acquisitions, Technology & OperationsMergers and Acquisitions,technology, Mergers and Acquisitions,Technology & Operations, S1, Fundtech
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