29 May 2015
Your browser is unable to support Flash files.

S1 sells off FRS subsidiary

14 August 2006  |  5358 views  |  0 purple swirls

Troubled fintech vendor S1 Corporation has sold its FRS subsidiary, which provides risk and regulatory compliance technology to financial services firms, to private equity firm The Carlyle Group and Kennet Partners, a technology investor.

James Mahan, CEO and chairman of S1, says the divestiture is part of the company's plan to refine the focus of its business to centre around delivering front office software to financial institutions.

Financial terms of the deal were not disclosed.

Earlier this year a group of investors that own a 7.2% share of Atlanta-based S1 have called for the sale of the underperforming business.

The investor group claimed the company had lost approximately 77% of its market value since January 2002, while revenue has declined by 13.8%, and the business continued to struggle despite significant capital investment.

S1 initially rejected the demands but later caved into investor pressure and agreed to explore "strategic alternatives to maximise shareholder value".

Last week the vendor reported second quarter revenue of $47.5 million, a two per cent decline on last year, and a net loss of $2.1 million, compared to a net profit of $2.3 million last year.

Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)

Related stories

03 May, 2006
31 March, 2006
29 March, 2006
02 March, 2006
21 November, 2005
17 October, 2005
28 June, 2005

Related company news

 
Your browser is unable to support Flash files.

Top topics

Most viewed Most shared
Google unveils Android Pay
5216 views comments | 23 tweets | 27 linkedin
CBA to test Ripple for intra-bank transfer...
5205 views comments | 25 tweets | 21 linkedin
Visa Europe opens innovation hub in Israel
4990 views comments | 19 tweets | 9 linkedin
BBVA rolls out 'remote control' card app
4691 views comments | 25 tweets | 26 linkedin
eBay and Village Capital run accelerator f...
4627 views comments | 10 tweets | 4 linkedin

Featured job

Basic £85-110K dependent on experience OTE circa £...
London

Find your next job