DH Buys Financial Software Maker Fundtech for $1.25 BillionGerrit De Vynck
DH Corp., a Canadian technology provider for banks, agreed to buy financial software maker Fundtech Ltd. for $1.25 billion from private equity firm GTCR.
The cash acquisition boosts DH’s presence in the U.S. and gives it access to banks outside of North America. The deal will add to earnings per share within a year of closing, expected in the second quarter, Toronto-based DH said Monday in a statement.
The company, which once focused on making checks for Canadian businesses, has been expanding its offerings over the past decade, building software to help banks make loans and run transactions. It will inherit more than 1,200 Fundtech clients across the globe that use its software to process payments and send messages, according to the statement. This is the DH’s ninth and largest acquisition, Chief Executive Officer Gerrard Schmid said in a telephone interview.
“Checks are in long-term decline, consumers are writing fewer of them,” Schmid said. “With the Fundtech acquisition, it puts us squarely into payments technology which is massively relevant for banks these days.”
Fundtech has about 1,500 employees in 19 offices worldwide, and posted adjusted earnings before interest, taxes, depreciation and amortization of $75 million in 2014, according to the statement. GTCR is based in Chicago.
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