18 October 2017
Find out more

S1 sells off FRS subsidiary

14 August 2006  |  5909 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)

Finextra news in your inbox

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

Related stories

S1 agrees to explore sale

S1 agrees to explore sale

03 May 2006  |  5600 views  |  0 comments
Investor group calls for S1 sale

Investor group calls for S1 sale

31 March 2006  |  5611 views  |  0 comments
Bank of America and S1 win patent infringement suit

Bank of America and S1 win patent infringement suit

29 March 2006  |  7319 views  |  0 comments
S1 slides into the red

S1 slides into the red

02 March 2006  |  5891 views  |  0 comments
S1 sells Edify business to Intervoice

S1 sells Edify business to Intervoice

21 November 2005  |  6248 views  |  0 comments
S1 cuts jobs; warns of Q3 loss

S1 cuts jobs; warns of Q3 loss

17 October 2005  |  6668 views  |  0 comments
FRS acquires Providus assets

FRS acquires Providus assets

28 June 2005  |  4417 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.innotribe.comRegister now

Top topics

Most viewed Most shared
Ripple looks to drive bank adoption with $300m XRP rebate programmeRipple looks to drive bank adoption with $...
15092 views comments | 12 tweets | 4 linkedin
Swift positive on blockchain, but big challenges remainSwift positive on blockchain, but big chal...
8313 views comments | 15 tweets | 21 linkedin
hands typing furiouslyHow artificial intelligence can deliver a...
7791 views 0 | 7 tweets | 9 linkedin
satelliteGates Foundation backs Ripple collaboratio...
7187 views comments | 13 tweets | 8 linkedin
IBM uses blockchain to improve cross-border payments processingIBM uses blockchain to improve cross-borde...
6359 views comments | 8 tweets | 16 linkedin

Featured job

Competitive base, commission, benefits
London, UK

Find your next job