ACI Worldwide has completed the acquisition of Retail Decisions (ReD) fraud prevention solutions. ReD is a leading ecommerce and fraud prevention company serving the payments industry. Its suite of solutions helps customers drive up revenues while reducing fraud losses and increasing the efficiency of their fraud management teams. ACI now expects ReD will generate approximately $18 million in revenue and $4 million in adjusted EBITDA for the remainder of 2014. They also expect non-GAAP revenue of $254 to $264 million in the third quarter.
ACI Worldwide will acquire ReD for an all-cash purchase price of $205 million and expects the transaction to close in the middle of the third quarter, 2014. ReD is a leading ecommerce and fraud prevention company serving the payments industry. The company’s suite of solutions – ReD Shield®, ReD Fraud Xchange, ReD PRISM®, ReD Alerts, ReDi, ReD1 Gateway and LiveProcessor – helps customers drive up revenues while reducing fraud losses and increasing the efficiency of their fraud management teams. ReD serves retailers, issuers, acquirers, processors and switch networks globally. ReD has a compelling SaaS and transaction-based financial model, with over 80 percent recurring revenue.
ACI Worldwide announced it has completed the acquisition of Official Payments Holdings, Inc., a leading provider of electronic bill payment solutions. Under the terms of the agreement, ACI Worldwide acquired Official Payments in an all-cash transaction for $8.35 per share. Official Payments currently has more than 3,000 customers representing access to over 100 million end users. The company processes approximately 20 million payments and over $9 billion in volume annually.
FICO has completed its acquisition of Adeptra cloud-based customer engagement and risk intervention solutions for an all-cash purchase price of approximately $115 million. Adeptra’s SaaS (software as a service) platform enables leading financial services institutions and other businesses to take advantage of the explosion in mobile communication in order to manage risk, fight fraud and dramatically improve the customer experience, all in real time. By using Adeptra’s technology combined with FICO’s decision management applications, businesses can move seamlessly from defining, changing and testing decisions to executing and resolving customer interactions while improving customer outcomes.
FIS banking and payments technology forged definitive agreement to sell its Healthcare Benefit Solutions business to Lightyear Capital for $335 million. The all-cash transaction is expected to close by the end of the third quarter of 2012, subject to required regulatory approvals and customary closing conditions. The sale includes FIS’ Consumer Driven Healthcare Solutions and Health and Financial Network Solutions, which provide benefits administration, multi-purse debit card and benefit account processing and payment fulfillment services to consumers, healthcare providers and payers. FIS will retain its state and federal government-sponsored electronic benefits transfer (EBT) businesses and programs which serve clients in more than 25 states.
Buffalo-based HSBC completed agreement to sell 195 retail branches to Buffalo-based First Niagara Bank for a consideration equal to a premium of 6.67% of the deposits to be transferred on closing, roughly $1.0billion. HSBC Bank USA remains committed to serving and further developing corporate banking relationships in Upstate New York and continue to provide a full suite of international commercial banking offerings, including trade and cash management products and services through its four business centres in the region. The all-cash transaction is expected to close in early 2012.
The National Retail Federation says the GAP study shines a spotlight on
credit card fees and their cost to consumers. the NRF says interchange
is a fee averaging 2% that Visa and MasterCard banks charge
merchants each time one of their credit cards is swiped to pay for a
purchase. The credit card industryâs interchange or âswipe feeâ revenue
has tripled from the $16 billion collected when NRF began tracking the
fees in 2001 to $48 billion last year. Visa and MasterCard rules
effectively force merchants to pass the fees on to consumers by
requiring them to be included in the advertised price of merchandise
and making cash discounts difficult. As a result, the NRF says the
average household paid an estimated $427 in higher prices last year, up
from $159 in 2001.
Effective immediately, DOCOMO has acquired a 35% stake in CA-based
NextWave subsidiary, PacketVideo wireless and digital home multimedia
software, for $45.5 million in an all-cash transaction. Allowing DOCOMO
to enhance its music and video service, thus, edging competitiveness for
both companies, the partnership expands relations between the
organizations which has been developing since 1998. PacketVideo’s “CORE”
multimedia player and “pvPlayer” technologies will now be incorporated
in multimedia applications for DOCOMO’s “FOMA” 3G mobile network
services on 90 handset models. DOCOMO mobile operator serves over 54
million customers in Japan while PacketVideo software is a subsidiary of
NextWave Wireless and offers multimedia services on millions of devices.
WI-based Fiserv agrees to acquire CheckFree in an all-cash transaction valued at about $4.4 billion. Shopko launches the “My Shopko extra savings Rewards Card” and the co-branded “my Shopko rewards VISA.” Contactless specialist ViVOtech picks up NCR as a new investor as it raised more than $22 million in its third round of funding. A new study from Demos find that 7% of white cardholders, 15% of African American and 13% of Latinos cardholders pay interest rates higher than 20%. Capital One inks deal to acquire prepaid card specialist NetSpend for $700 million in cash. Austin, TX-based Austin Ventures’ CreditCards.com, Inc. files a registration statement with the SEC for an IPO. The TJX Companies reports it took an after-tax cash charge of approximately $118 million for its recent computer intrusion events. Hypercom unveils a new version of its “PCI PED” certified “P1300 PIN Pad.” BankAtlantic becomes the first Florida bank to become an agent offering American Express business cards. Bank of America becomes the first “Official Bank of the NFL” in the U.S. and has introduced the “NFL Checking” program that includes “Check Cards” and checks designed specifically for the pro football fan. First Data’s “STAR Network” surcharge-free service hooks-up with the nation’s largest surcharge-free ATM network. Shell Oil Products US begins to implement VISA USA’s partial authorization policy for prepaid VISA cards. 7-Eleven, Elan Financial Services and InComm introduce the “Vanilla VISA Gift Card.”
CT-based affinity marketer Affinion Group reports it has acquired a base of approximately half a million members and the associated fee revenue stream, valued at $50 million, from a U.S.-based financial institution. The acquired members are participating in credit card registration programs designed to protect, assist and reimburse members whenever a registered card is lost or stolen. With the anticipated benefits from this acquisition, Affinion is projecting its 2008 Adjusted EBITDA to be within the range of $305 – $315 million. This projected range exceeds the company’s previously announced targeted annual growth rate of between 6-8% in Adjusted EBITDA for 2008. Affinion has financed this purchase through a combination of cash on hand and borrowings from its revolving credit facility. Affinion made four prepayments totaling $100 million in 2007 against the balance of its term loan. To date, Affinion has made nine voluntary prepayments totaling $205 million, or approximately 24% of the original term loan, and the company continues to be in full compliance with all of its banking covenants.
Hedge fund Pershing Square has made an about face over its objection to Ceridian’s proposed sale to Fidelity National Financial and private equity firm Thomas H. Lee. Pershing Square says it now it intends to fully support the $5.2 billion buyout. The hedge fund said that significant recent developments in the credit markets raised its confidence that the deal is the highest all-cash price reasonably attainable for the company. In a proxy filing filed this week with the SEC, Pershing Square stated that, if elected, its nominees plan to fully support the company’s efforts to complete the transaction as soon as possible. Pershing Square also disclosed that its nominees plan to make no changes in management pending the completion of the deal. Pershing Square owns about 15% of Ceridian. (CF Library 7/27/07)
Capital One has inked a deal to acquire prepaid card specialist NetSpend for $700 million in cash. NetSpend has more than 1.5 million active customers nationwide and a retail network that has 15,000 locations where cards can be purchased and 50,000 locations where funds can be loaded. NetSpend has distribution relationships with Safeway, Pathmark, HEB Grocery Stores, ACE America’s Cash and others. Under the terms of the agreement, NetSpend will become a subsidiary of Capital One. NetSpend’s CEO, Richard Savard, will continue to lead the prepaid business after the acquisition has been finalized and will assume a key executive role within Capital One’s Payments business. The deal is expected to close in the fourth quarter.