SunGard bids for Singapore's System Access
24 July 2006 | 8228 views | 0
SunGard's Asia Pacific subsidiary has made a conditional offer of S$120 million ($76 million) in cash for Singapore-listed e-banking technology vendor System Access.
SunGard Asia Pacific has made a cash offer of S$0.36 per share for System Access. The offer represents a premium of about 20% over the stock's last trading price of S$0.30 on the Singapore Exchange on 21 July 2006, and values the company at S$120.2 million.
Established in 1983, System Access's flagship electronic banking software, Symbols, is used by financial insitutions across 25 countries. The vendor also provides card payment technology to banks. Its CardPro suite includes consumer and commercial card management and payment systems.
SunGard says its offer will become unconditional if it secures 90% of the issued shares of System Access. So far it has received irrevocable undertakings for 37.7% of the issued share capital of the Singapore company.
SunGard says the acquisition will expand its portfolio of product offerings into the core banking space.
John Wilson, president of SunGard's Asia Pacific business, adds: "Core banking is a strategic priority for banks in Asia Pacific and emerging markets. The planned acquisition of System Access will help position SunGard with an expanded portfolio of product offerings that includes core banking alongside our existing category-leading trading, treasury, risk, and wealth management offerings."
The fintech giant aims to make System Access a wholly-owned subsidiary and de-list the unit from the Singapore Exchange.
Leslie Loh, executive chairman and chief executive officer of System Access, comments: "SunGard's industry footprint, distribution, and service delivery capabilities will help extend System Access’s product offerings. With the addition of Symbols, SunGard will have a leading offering based on new generation technology that can help banks to lower costs and grow revenue."