Fintech and regtech outfit Computer Services Inc is set to go private after agreeing to be bought by investment firms Centerbridge Partners and Bridgeport Partners for around $1.6 billion.
The all-cash transaction is expected to close in the fourth quarter after getting the unanimous approval from CSI's board of directors. The $58 per share price represents a 53% premium to CSI’s closing price on 19 August.
Shares in the Kentucky-based company, which was founded in 1965 and employs more than 1200 people, rose by about 50% on the news.
CSI provides core processing, digital banking, managed cybersecurity, cybersecurity compliance, payments processing, print and electronic document distribution, and regulatory compliance technology to nearly 2600 financial institutions and corporate customers.
Founder and Chairman Emeritus John Williams, says: “Having formed CSI nearly six decades ago, I am pleased to support this transaction as it will provide shareholders with immediate cash at a compelling value premium.
"In addition, I believe that our customers, employees and communities can rest assured that—based on their history—current management, Centerbridge and Bridgeport will continue CSI’s legacy.”