CSI, a decades-old fintech solutions provider, agrees to be acquired for $1.6 billion – TechCrunch
Showing that the regtech industry remains resilient against economic headwinds, private equity firms Centerbridge Partners and Bridgeport Partners today announced plans to acquire publicly traded Computer Services, Inc. (CSI), a provider of payment processing and regulatory services, for 1, 6 billion dollars. in a cash agreement. CSI CEO David Culbertson said the transaction – which amounts to $58 per share of CSI common stock – will enable the company to execute “strategic plans” to “expand and diversify” CSI’s various product offerings.
CSI may not be a household name. But according to the Paducah, Kentucky-based company’s website, it has been around in one form or another since 1965, shortly before it began operating a data bank processing center in Madisonville. Throughout the 1980s, CSI built a network of data centers, began selling its first PC software, and developed what it claims was one of the first electronic ATM systems. In recent years, CSI has launched a mobile banking solution and products relevant to business intelligence and enterprise risk management.
Today, CSI claims to have nearly 2,600 clients and over 1,100 employees worldwide.
“For more than 57 years, CSI has been known as a leader in innovation and customer service. Centerbridge and Bridgeport have deep experience in technology and financial services as owners and operators, Culbertson said in a news release.
Centerbridge and Bridgeport note that the deal, if approved by shareholders and regulators as they expect in Q4 2022, will provide CSI shareholders with a 53% premium over CSI’s closing share price as of August 19. CSI’s board unanimously approved the plan to take the company private; After the acquisition, the share will no longer be listed on the public market.
“I am pleased to have this opportunity to partner with Centerbridge on the acquisition of CSI, a company that I have followed closely for decades and have come to respect as a true leader in financial services and technology,” said Bridgeport founder Frank Martire in a statement. “CSI has always been known for its commitment to its customers, employees, partners and the communities it serves – a reputation that Centerbridge and Bridgeport are committed to maintaining as we work with David and his team to implement the company’s growth initiatives.”
Compliance angle aside, fintechs continue to attract a large share of investors’ dollars. Venture capital firms invested $28.8 billion in fintech and crypto companies in Q1 2022, equivalent to $1 of every $5 invested, according to CB Insights. Last year, VCs pumped $132.5 billion into the sector – more than double the amount compared to 2020 ($49 billion).
