Computer Services, Inc. (CSI), a provider of end-to-end fintech and regtech solutions, announced it has entered into a definitive agreement to be acquired by Centerbridge Partners, L.P. (Centerbridge), a global, multi-strategy private investment firm “with deep experience investing in financial services and technology, and Bridgeport Partners, a private investment firm with a long-term, value-oriented approach, in an all-cash transaction valued at approximately $1.6 billion, or $58.00 per share.”
The transaction follows “a robust strategic review process and was unanimously approved by CSI’s board of directors.”
Under the terms of the agreement, CSI shareholders will “receive $58.00 per share in cash upon the closing of the transaction, which is expected to occur in the fourth quarter of calendar year 2022, subject to customary closing conditions, including CSI shareholder approval and regulatory review.”
The per-share purchase price “represents a 53% premium to CSI’s closing stock price on Aug. 19, 2022, the last full trading day before the agreement was announced, and a premium of 54.4% over CSI’s 30-day volume-weighted average share price.”
Steve Powless, CSI’s Chairman of the Board, said:
“After a thorough strategic review, the CSI board of directors is very pleased to announce this transaction and believes it is in the best interests of our shareholders. Upon completion of the transaction, CSI intends to continue operating under the leadership of CEO David Culbertson and the CSI leadership team, with its headquarters expected to remain in Paducah, Kentucky.”
Further, in connection with the transaction, “all members of the CSI board of directors and Founder and Chairman Emeritus John A. Williams have entered into a voting and support agreement to vote in favor of the transaction.”
Williams commented:
“Having formed CSI nearly six decades ago, I am pleased to support this transaction as it will provide shareholders with immediate cash at a compelling value premium. In addition, I believe that our customers, employees and communities can rest assured that—based on their history—current management, Centerbridge and Bridgeport will continue CSI’s legacy.”
CSI’s long history of delivering end-to-end solutions “includes serving nearly 2,600 customers in the U.S. and in 30 other countries while pioneering innovative technology advancements.”
David Culbertson, CSI’s President and CEO, added:
“For more than 57 years, CSI has been known as a leader in innovation and customer service. Centerbridge and Bridgeport have deep experience in technology and financial services as owners and operators. Working together after the closing, CSI intends to execute our strategic plans to expand and diversify our product offerings, transform our technology to leverage the scale and resiliency of the public cloud, and deploy optimized fintech and regtech solutions through our open banking and banking-as-a-service initiatives.”
In working with Centerbridge and Bridgeport, CSI plans “to carry on its tradition of excellence and continue to invest in its product roadmap to bring more solutions to market faster.”
For more details on this update, check here.