GTCR buys Fundtech for a whopping US$388 million through ‘parent’ merger [UPDATE]

December 2, 2011  |  Electronic Invoicing, North America

Fundtech has been acquired by GTCR for a whopping US$388 million. That is a tenfold of the price Ariba paid for B-process. (How come no one talks a bout this and everyone is tsjirping on the Ariba deal?) Anyway this how the actual acquisition took place.

Fundtech’s shareholders approved, of the merger of Fundtech with F.T. Israeli Mergerco Ltd.. The latter is a full daughter of the company called US FT Parent, Inc. Both companies are formed by GTCR Fund.

In the merger between Fundtech and F.T. Israeli Mergerco Ltd, Fundtech will survive and become an indirect, wholly owned subsidiary of US FT Parent, Inc.. Fundtech’s shareholders in the Merger, will receive US$23.33 in cash, with a combined worth of around US$388 million.

Fundtech and Bankserv

The consolidation of Fundtech with GTCR-affiliated BankServ will combine Fundtech’s solutions for financial institutions and BankServ’s SaaS solutions for US community and regional banks. It is expected that that will have an expanded range of wholesale banking and small-to-medium business products. The combined company Fundtech-Bankserv company has an estimated revenue of $200 million in 2011 and 1,300 employees worldwide.

Quote

Fundtech chairman Avi Fischer:

“The deal reflects international recognition of Fundtech’s achievements, and reflects a handsome yield for investors. It is a certificate of honor, especially given the global market conditions. I believe that the company will continue to grow, develop and lead the market together with GTCR.”

About Fundtech

Fundtech was founded in 1993, and is a provider of software and services to banks of all sizes around the world: Payments systems, wire transfers, ACH origination, cross-border payments and remittance, cash management systems and the world’s largest SWIFT service bureau, electronic invoice presentment and supply chain financing.

More than 1,000 clients throughout the world rely on Fundtech solutions to improve operational efficiency and provide greater competitiveness through innovative business-to-business services. For more information, visit Fundtech’s profile on the right.


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