Fair, Isaac and HNC Software have entered a merger agreement which will see the two companies combining their business analytic and decision management technologies, respectively. The deal is valued at approximately $810 million.
Under the merger agreement, approved by both boards of directors, the owners of HNC will receive 0.346 of a newly issued Fair, Isaac share for each share of HNC. HNC stockholders will own approximately 35 per cent of the total outstanding capital stock of the merged company - which will take on the name of Fair, Isaac.
Two directors from HNC will join the board of directors of Fair, Isaac, bringing the total number of board members to nine. Tom Grudnowski will remain the chief executive officer of Fair, Isaac.
The transaction is expected to be tax-free to stockholders of both companies for US federal income tax purposes and is expected to close in the third quarter, subject to regulatory approval.