Nochi Dankner today completed the sale of Fundtech Ltd. and its merger with FT Israeli Mergerco Ltd., a company created by GTCR Fund X/A LP for this purpose. The sale by IDB Holding Corp. Ltd. (TASE:IDBH) unit Clal Industries and Investments Ltd. (TASE: CII) was made at $23.33 per share, giving Fundtech a value of $390 million.
Clal Industries received $205 million for its 58.6% stake in Fundtech, which has been delisted from Nasdaq and the Tel Aviv Stock Exchange (TASE) following the sale.
The consolidation of Fundtech with GTCR-affiliated BankServ will have an expanded range of wholesale banking and small-to-medium business products, and will combine Fundtech’s solutions for financial institutions and BankServ's SaaS solutions for US community and regional banks. Fundtech CEO Reuven Ben-Menachem will keep his job and BankServ CEO Dave Kvederis will join Fundtech's board.
Fundtech said that the combined company had estimated revenue of $200 million in 2011 and 1,300 employees worldwide.
Clal Industries co-CEO and Fundtech chairman Avi Fischer said, "The deal reflects international recognition of Fundtech's achievements, and reflects a handsome yield for investors. It is a certificate of honor, especially given the global market conditions. I believe that the company will continue to grow, develop and lead the market together with GTCR."
Published by Globes [online], Israel business news - www.globes-online.com - on December 1, 2011
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