US based private equity firm Thoma Bravo LLC announced today the sale of Digital Insight Incorporation, its portfolio company, to NCR Corporation (formerly known as National Cash Register). The deal amount is $1.65 billion. The deal is expected to close in Q1 2014.
Digital insight was founded in 1995 and is one of largest provider of outsourced On-line Financial Management (OFM) solutions in US market. Digital Insight went public in 1999, but was acquired by Intuit Inc. in 2007 for $1.35 billion. This was financed by $1 billion debt and other through cash. Share price of Digital rose by 15% after the announcement of this deal while that of Intuit slipped by 1.2%.
On July 1, 2013 Thomas Bravo announced the acquisition of its financial services division i.e. Digital Insight, which was renamed as such. This was cash transaction of $1.025 billion. At this point of time, Intuit was very keen on selling its financial services division in a hurry. NCR corporation tried to buy it at that pint of time also, but was kicked out because of lightening fast speed with which transaction completed. Typically strategic buyers like NCR take more lead time, while PE firms like Thoma Bravo can easily fund transactions in a hurry that it did by help of bridge loans.
But NCR didn't gave up so easily. For NCR this transaction was very crucial for its financial and mobile division business. After Thomas Bravo formally closed deal on August 1, 2013, NCR started taking with Thomas in October to buy Digital Insight. The transaction finally materialized at $1.65 billion.
Thomas made a $600 million profit in 3-4 months. This is quite high profit as compared to PE history.
Along with Digital Insight NCR also announced the purchase of Alaric Systems Ltd for $84 million. This firm provides secure transaction switching and fraud prevention software. These two transaction combiningly will complement and extend NCR's existing capabilities. The combination will help banks and other financial institutions reduce legacy costs.
Both of these transactions are subject to regulatory approvals and formalities.
Digital insight was founded in 1995 and is one of largest provider of outsourced On-line Financial Management (OFM) solutions in US market. Digital Insight went public in 1999, but was acquired by Intuit Inc. in 2007 for $1.35 billion. This was financed by $1 billion debt and other through cash. Share price of Digital rose by 15% after the announcement of this deal while that of Intuit slipped by 1.2%.
On July 1, 2013 Thomas Bravo announced the acquisition of its financial services division i.e. Digital Insight, which was renamed as such. This was cash transaction of $1.025 billion. At this point of time, Intuit was very keen on selling its financial services division in a hurry. NCR corporation tried to buy it at that pint of time also, but was kicked out because of lightening fast speed with which transaction completed. Typically strategic buyers like NCR take more lead time, while PE firms like Thoma Bravo can easily fund transactions in a hurry that it did by help of bridge loans.
But NCR didn't gave up so easily. For NCR this transaction was very crucial for its financial and mobile division business. After Thomas Bravo formally closed deal on August 1, 2013, NCR started taking with Thomas in October to buy Digital Insight. The transaction finally materialized at $1.65 billion.
Thomas made a $600 million profit in 3-4 months. This is quite high profit as compared to PE history.
Along with Digital Insight NCR also announced the purchase of Alaric Systems Ltd for $84 million. This firm provides secure transaction switching and fraud prevention software. These two transaction combiningly will complement and extend NCR's existing capabilities. The combination will help banks and other financial institutions reduce legacy costs.
Both of these transactions are subject to regulatory approvals and formalities.
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