ACI Worldwide has increased the cash component of its takeover offer for S1 Corporation by 50 cents a share.
In June S1 agreed an all-stock merger with transaction banking vendor Fundtech in a deal valuing the combined entity at around $700 million.
The following month ACI sought to derail the agreement with an offer of $5.70 per share plus 0.1064 of its own shares for S1, valuing the company at around $540 million.
The S1 board rejected ACI's approach and set a special meeting for 22 September when shareholders will vote on the Fundtech deal. ACI has already filed preliminary proxy materials with the SEC to solicit S1 shareholder votes against it.
Now, it has also has returned with a new proposal, increasing the cash part of its bid to $6.20 for each S1 a share. This ups the offer from a blended value of $9.50 a share to $10 based on the 25 July closing price.
However, based on yesterday's closing price, the blended value is just $9.29 per share.
Philip Heasley, president and CEO, ACI, says: "Given the uncertain and volatile market conditions, we have enhanced the cash component of our proposal to provide additional certainty and value for S1 shareholders."
In a brief statement, S1 has responded to the revised offer: "S1's Board of Directors will review the terms of the revised proposal submitted by ACI in a manner consistent with its obligations under the merger agreement with Fundtech and applicable Delaware law, and will consider such options or alternatives that it believes to be in the best interests of S1's stockholders."