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8-K - FORM 8-K - ACI WORLDWIDE, INC. | c65991e8vk.htm |
EX-99.1 - EX-99.1 - ACI WORLDWIDE, INC. | c65991exv99w1.htm |
Exhibit 99.2
ACI Worldwide 6060 Coventry Drive Elkhorn, NE 68022-6482 United States T +1 402 390 7600 www.aciworldwide.com |
August 25, 2011
John W. Spiegel Chairman of the Board of Directors S1 Corporation 705 Westech Drive Norcross, Georgia 30092 |
Dear John
We remain
committed to acquiring S1 Corporation and are pleased to inform you
that we have enhanced our proposal in order to provide S1 shareholders with additional value certainty for
their investment. Given the recent significant market volatility, ACI Worldwide, Inc. has
increased its cash and stock proposal from $5.70 per share, plus 0.1064 ACI shares, to $6.20 per
share, plus 0.1064 ACI shares, assuming full proration.
We are confident that your shareholders will find our enhanced proposal to be superior to the
Fundtech Ltd. transaction, and we stand ready and willing to promptly engage with S1 to consummate
a transaction that benefits both companies shareholders. Based on the closing price of ACI stock
on July 25, 2011, the day prior to our initial proposal, our enhanced proposal provides a per share
consideration of $10.00 to each S1 shareholder. Based on the closing price of ACI stock on August
24, 2011, our enhanced proposal provides a per share consideration of $9.29 to each S1 shareholder.
ACIs enhanced proposal also equates to a:
| 30% premium to S1s unaffected closing market price on July 25, 2011; | ||
| 29% premium to the volume weighted average price of S1 shares over the previous 90 days prior to July 25, 2011; and | ||
| 20% premium to the 52-week high of S1 shares, for the 52-week period ending July 25, 2011. |
When evaluating our enhanced proposal, we strongly encourage you to consider at what price levels
S1 would be trading absent the ACI proposal. Since we made our proposal on July 26, 2011, the
NASDAQ Index has declined by 13% while S1s stock price,
affected by the value of the ACI proposal, has
generally avoided the declines experienced in the overall market.
Furthermore, we believe that your shareholders know that, had
ACI not made its proposal, S1s share price would have been affected by the overall decline in
stock market valuations. We also believe that the S1 shareholder
reaction to our proposal, despite the significant ensuing market volatility, underscores its
strength.
Your August 22, 2011, shareholder letter questioned whether we had the financing for the cash
portion of our merger proposal as well as our commitment to obtain clearance under the
Hart-Scott-Rodino (HSR) Act. To resolve these issues, we have a fully executed commitment letter
from Wells Fargo Bank, N.A. sufficient to fund the cash required by our proposal and to finance our
ongoing operations, and we would be pleased to provide a copy of such a commitment letter upon request. In
addition, we reiterate that we are willing to provide appropriate assurance of satisfaction of the
HSR Act condition, including a divestiture commitment (if required) and substantial break-up
compensation. However, it does not withstand scrutiny for S1 to, on the one hand, refuse to engage
with us on these issues and, on the other hand, point to these issues as a reason for not engaging
in the first place.
As S1 has been unwilling to engage, we are taking the actions we believe necessary to consummate
our proposed transaction. We are filing our definitive proxy statement to begin
solicitation of votes against the proposed Fundtech transaction and, rest assured, we will take all
actions necessary to advance our proposal. We would, however, strongly prefer to begin a direct
dialogue with S1s management and advisors.
We believe that our proposal represents a Parent
Superior Offer that clearly meets the standards set forth in Section 6.7(a) of the Fundtech merger
agreement as it is more favorable to S1 shareholders from a financial point of view than the
Fundtech transaction and it is likely to be completed, taking into account all financial,
regulatory, legal and other aspects of our proposal.
We remain convinced of the strategic benefits of this transaction and strongly believe that it is
in the best interests of both ACIs and S1s shareholders. We look forward to your prompt reply.
Sincerely,
/s/
Philip G. Heasley
President and CEO
cc: Johann Dreyer, Chief Executive Officer, S1 Corporation
Philip G. Heasley
President and CEO
cc: Johann Dreyer, Chief Executive Officer, S1 Corporation