Barely three months after its first announcement, ACI in the world has just confirmed that the sale of its online business banking solutions to An equity partner (OEP) is over.
ACI Digital Business Banking is ACI’s technology platform that provides solutions to commercial and corporate banking customers through an API-driven interface.
OEP, a private equity firm, has now purchased the platform in a deal believed to be around $100 million.
It is believed that the OEP paid this value in cash.
The sale includes customer contracts, technology assets and intellectual property. Employees dedicated to these solutions migrated to the new company.
As companies grow, they can often find that they have branched out into too many business areas. Thus, to remain profitable, the company may seek to sell or exchange all or part of its assets in what is known as an assignment.
In an official statement, Odilon AlmeidaChairman and CEO of ACI Worldwide, confirmed that the divestiture of its platform was intended to “maximize shareholder value”.
Elaborating on this point, Almeida predicted that the divestiture would “improve our growth rates and provide additional flexibility to invest in growth and return capital to shareholders through share buybacks.”
The divestiture will allow ACI to focus more on its faster growing core business areas while providing cash for future investments.
“Our core business is resilient in a turbulent environment. This divestment improves our growth profile and facilitates our progress towards achieving our revenue growth target of 7-9% by 2024,” Almeida concluded.
The company has repurchased 2.7 million shares for $80 million year-to-date through Aug. 31, 2022, with $136 million remaining on its share repurchase authorization.
ACI has confirmed that it is adjusting its guidance for the full year and third quarter of 2022 to reflect the divestiture of online banking solutions.