Open Solutions sold in $1.3bn deal

Open Solutions sold in $1.3bn deal

US financial software vendor Open Solutions has signed a definitive agreement to be acquired by private equity firms Carlyle Group and Providence Equity Partners in a deal worth over $1.3 billion.

Founded in 1992 Open Solutions provides database products that enable financial services firms to manage and integrate applications including Internet banking, accounting, cash management, CRM, payment and loan origination systems.

Under the deal Open Solutions stockholders will receive $38.00 in cash per share, which represents a 32% premium over the average closing price of Open Solutions' stock for the last thirty trading days.

Open Solutions says the enterprise value of the transaction, including assumption of debt, is more than $1.3 billion.

Commenting on the acquisition, Bud Watts, MD of Carlyle Group, says both Providence and Carlyle will "support the continued growth and expansion of Open Solutions with aggressive investment in internal R&D, customer service, and complementary acquisitions".

Louis Hernandez, chairman and CEO, Open Solutions, says: "With this announced transaction we fulfill our desire to deliver an excellent value for our stockholders and at the same time ready Open Solutions to enter the next stage in our history."

The transaction is expected to be completed during the first quarter of 2007 and is subject to various conditions.

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