With Speedpay, ACI will expand its reach in the U.S. bill pay market
NAPLES, Fla.--(BUSINESS WIRE)--May 9, 2019--
ACI
Worldwide (NASDAQ: ACIW), a leading global provider of real-time electronic
payment and banking solutions, today announced that its
acquisition of Speedpay – Western Union’s United States bill pay
business – will be completed today. Under the terms of the agreement,
ACI Worldwide is acquiring Speedpay for an all-cash purchase of $750
million, subject to customary adjustments.
With Speedpay, ACI will expand its reach into existing and complementary
segments such as consumer finance, insurance, healthcare, higher
education, utilities, government and mortgage. The Speedpay and ACI’s UP Bill
Payment platforms will become a unified bill
payment platform that supports billions of transactions and drives
digital bill payment forward.
“The acquisition marks an exciting new era in bill pay. The combination
of Speedpay and ACI brings together an incredibly strong team of bill
pay experts and a powerful next-generation platform. As we join forces,
we are focused on driving innovation and revolutionizing bill pay for
our thousands of customers,” said Phil Heasley, president and CEO, ACI
Worldwide. “Strategically moving forward, this acquisition also
accelerates the delivery of ACI’s ‘Any Payment, Every Possibility’
vision to serve the real-time digital payments needs of merchants,
corporates and billers.”
The addition of Speedpay is expected to contribute between $215 million
and $220 million in revenue and between $50 million and $55 million in
adjusted EBITDA to the remainder of 2019.
Centerview Partners LLC is acting as financial advisor to Western Union
and BofA Merrill Lynch is acting as financial advisor to ACI. Sidley
Austin LLP is Western Union’s counsel and Jones Day is advising ACI.
In separate press releases issued today, ACI announced the completion of
its acquisition of Walletron from Western Union, as well as first
quarter 2019 financial results. The press releases are available on
ACI’s website, www.aciworldwide.com/.
ACI will host a conference call at 8:30 am ET today to discuss these
transactions as well as first quarter 2019 results and full year 2019
and 2020 expectations. Interested persons may access a real-time audio
broadcast of the teleconference at http://investor.aciworldwide.com/
or use the following numbers for dial-in participation: US/Canada: (866)
914-7436, international: +1 (817) 385-9117. Please provide your name,
the conference name ACI Worldwide, Inc. and conference code 1270429.
There will be a replay of the call available for two weeks on (855)
859-2056 for US/Canada callers and +1 (404) 537-3406 for international
participants.
About ACI Worldwide
ACI Worldwide, the Universal
Payments (UP) company, powers electronic
payments for more than 5,100 organizations around the world. More
than 1,000 of the largest financial institutions and intermediaries, as
well as thousands of global merchants, rely on ACI to execute $14
trillion each day in payments and securities. In addition, myriad
organizations utilize our electronic
bill presentment and payment services. Through our comprehensive
suite of software solutions delivered on customers’ premises or through
ACI’s private
cloud, we provide real-time, immediate
payments capabilities and enable the industry’s most complete omni-channel
payments experience. To learn more about ACI, please visit www.aciworldwide.com.
You can also find us on Twitter @ACI_Worldwide.
© Copyright ACI Worldwide, Inc. 2019
ACI, ACI Worldwide, the ACI
logo, ACI Universal Payments, UP, the UP logo and all ACI
product/solution names are trademarks or registered trademarks of ACI
Worldwide, Inc., or one of its subsidiaries, in the United States, other
countries or both. Other parties' trademarks referenced are the property
of their respective owners.
Product roadmaps are for informational purposes only and may not be
incorporated into a contract or agreement. The development release and
timing of future product releases remains at ACI’s sole discretion. ACI
is providing the following information in accordance with ACI's standard
product communication policies. Any resulting features, functionality,
and enhancements or timing of release of such features, functionality,
and enhancements are at the sole discretion of ACI and may be modified
without notice. All product roadmap or other similar information does
not represent a commitment to deliver any material, code, or
functionality, and should not be relied upon in making a purchasing
decision.
Forward-Looking Statements
This
press release contains forward-looking statements based on current
expectations that involve a number of risks and uncertainties.
Generally, forward-looking statements do not relate strictly to
historical or current facts and may include words or phrases such as
“believes,” “will,” “expects,” “anticipates,” “intends,” and words and
phrases of similar impact. The forward-looking statements are made
pursuant to safe harbor provisions of the Private Securities Litigation
Reform Act of 1995.
Forward-looking statements in this press release include, but are not
limited to, statements regarding (i) with Speedpay, ACI will expand its
reach in the U.S. bill pay market, including into existing and
complimentary segments; (ii) revolutionizing bill pay for our thousands
of customers; (iii) acceleration of the delivery of ACI’s ‘Any Payment,
Every Possibility’ vision; and (iv) expectations regarding revenue and
adjusted EBITDA contributions for the remainder of 2019.
All of the foregoing forward-looking statements are expressly qualified
by the risk factors discussed in our filings with the Securities and
Exchange Commission. Such factors include, but are not limited to,
increased competition, the success of our Universal Payments strategy,
demand for our products, restrictions and other financial covenants in
our credit facility, consolidations and failures in the financial
services industry, customer reluctance to switch to a new vendor, the
accuracy of management’s backlog estimates, the maturity of certain
products, our strategy to migrate customers to our next generation
products, failure to obtain renewals of customer contracts or to obtain
such renewals on favorable terms, delay or cancellation of customer
projects or inaccurate project completion estimates, volatility and
disruption of the capital and credit markets and adverse changes in the
global economy, our existing levels of debt, impairment of our goodwill
or intangible assets, litigation, future acquisitions, strategic
partnerships and investments, the complexity of our products and
services and the risk that they may contain hidden defects or be
subjected to security breaches or viruses, compliance of our products
with applicable legislation, governmental regulations and industry
standards, our ability to protect customer information from security
breaches or attacks, our compliance with privacy regulations, our
ability to adequately defend our intellectual property, exposure to
credit or operating risks arising from certain payment funding methods,
the cyclical nature of our revenue and earnings and the accuracy of
forecasts due to the concentration of revenue-generating activity during
the final weeks of each quarter, business interruptions or failure of
our information technology and communication systems, our offshore
software development activities, risks from operating internationally,
including fluctuations in currency exchange rates, exposure to unknown
tax liabilities, volatility in our stock price, adverse effects of
acquisitions, strategic partnerships or significant investments in new
business and potential claims associated with our sale and transition of
our CFS assets and liabilities. For a detailed discussion of these risk
factors, parties that are relying on the forward-looking statements
should review our filings with the Securities and Exchange Commission,
including our most recently filed Annual Report on Form 10-K and our
Quarterly Reports on Form 10-Q.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190509005068/en/
Source: ACI Worldwide
Media Contacts:
Dan Ring
E-mail: dan.ring@aciworldwide.com
Phone:
781-370-3600
Nidhi Alberti
Email: nidhi.alberti@aciworldwide.com
Phone:
781-370-3600
Investor Relations:
John Kraft
E-mail: john.kraft@aciworldwide.com
Phone:
239-403-4627
