Payment processing software company ACI Worldwide has entered an agreement to buy Official Payments Holdings, a seller of electronic bill payment technology.
The deal is an all-cash transaction for $8.35 per share, and will give ACI access to OPays range of government, educational and charity clients in the electronic billing space. OPay has more than 3,000 customers representing access to more than 100 million users, and processes more than $9 billion in annual payments.
The purchase will also help ACIs efforts to build an end-to-end payment services platform, ACI said. ACI will make a cash tender offer for OPay stock in October and expects the purchase to close in the fourth quarter.
The acquisition will further extend ACIs leadership in the fast-growing [electronic bill presentment and payment] space, expanding our portfolio across key sectors, said Philip Heasley, President and CEO of ACI Worldwide in a Sept. 23 press release.
The boards of both companies have approved the deal. ACIs acquisitions have not always gone as smoothly. The company earlier acquired S1 in a hostile bid after a nasty battle with Fundtech.
[The OPay deal] provides the opportunity to develop new capabilities previously unmet in the rapidly growing EBPP sector, said Alex Hart, CEO of OPay, in a press release.
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Corrected September 24, 2013 at 5:00AM: An earlier version of this story omitted that ACI plans to make a cash tender offer for outstanding OPay stock, which the companies expect to close in the fourth quarter.