Based in the US, CSI offers core processing, digital banking, managed cybersecurity and other software solutions to financial institutions and corporate entities worldwide
Fintech, regtech and cybersecurity solutions firm Computer Services (CSI) is set to go private through a deal worth nearly $1.6bn with NYC-based private investment firms Centerbridge Partners (Centerbridge) and Bridgeport Partners (Bridgeport).
As per the terms of the deal, CSI shareholders will be offered $58.00 per share in cash by Centerbridge and Bridgeport upon the closing of the transaction.
Based in the US, the fintech firm offers core processing, digital banking, managed cybersecurity and other software solutions to financial institutions and corporate entities worldwide.
Upon the completion of the transaction, CIS common stock will no longer be listed on any public market. It aims to deliver products and solutions to the market faster with the collaboration of the two investment firms.
CSI president and CEO David Culbertson said: “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.
“Working together after the closing, CSI intends to execute our strategic plans to expand and diversify our product offerings, transform our technology to leverage the scale and resiliency of the public cloud, and deploy optimised fintech and regtech solutions through our open banking and banking-as-a-service initiatives.”
The transaction, which followed a strategic review process, is said to have been approved unanimously by CSI’s board of directors.
CSI chairman of the board Steve Powless said: “Upon completion of the transaction, CSI intends to continue operating under the leadership of CEO David Culbertson and the CSI leadership team, with its headquarters expected to remain in Paducah, Kentucky.”
The transaction, which is subject to approval by the shareholders of CSI, regulatory approvals, and customary closing conditions, is expected to close in the fourth quarter of 2022.
Founded in 2005, Centerbridge, with a management asset of $34bn, is said to have a flexible approach across investment disciplines, including private equity, private credit and real estate.
Centerbridge senior managing director Jared Hendricks said: “Supporting high-quality companies is central to our strategy at Centerbridge, and we have a deep track record of doing so in both financial services and technology.
“We are excited to work with CSI, as we share a like-minded commitment to innovation for customers and satisfaction for employees.”
Bridgeport offers a long-term, value-oriented approach to support management teams and companies through industry and economic cycles.