US financial software vendor Open Solutions is acquiring Datawest Solutions, a Canadian provider of core data processing and payments technology, for C$49.7 million.
Connecticut-based Open Solutions will pay $1.23 for each Datawest common share, and C$2 for per preferred share. The purchase price is considerably higher than the stock's closing price on Wednesday of 86 Canadian cents.
Open Solutions says the acquisition will allow it to expand into the Canadian market. Datawest's core data processing business primarily serves the Canadian credit union marketplace, while its payment business manages Canada's largest ATM network.
Following the acquisition, Open Solutions will operate Datawest as wholly-owned newly incorporated Canadian subsidiary. Datawest will continue to be located in Canada and operate its banking solutions data centre in Vancouver and payment solutions data centre in Oakville near Toronto.
Louis Hernandez, chairman and CEO, Open Solutions, says: "This acquisition will enable our organisation to further expand our market presence and extend our reach with in the financial services sector."
Subject to shareholder approval, the transaction is expected to close in Open Solutions' fourth quarter.