This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Acquisition Of Official Payments Holdings, Inc. By ACI Worldwide May Not Be In The Best Interests Of Official Payments Holdings, Inc. Shareholders

SAN DIEGO and NORCROSS, Ga., Sept. 23, 2013 /PRNewswire/ --  Shareholder rights attorneys at Robbins Arroyo LLP are investigating the acquisition of Official Payments Holdings, Inc. (NASDAQ: OPAY) by ACI Worldwide (NYSE: ACIW).  On September 23, 2013, the two companies announced the signing of a definitive merger agreement under which ACI will acquire Official Payments in an all cash transaction for $8.35 per share.  The boards of directors of both companies have unanimously approved the transaction.  ACI Worldwide will commence a cash tender offer to purchase all outstanding shares of common stock, which is expected to close in the fourth quarter of 2013.


Is the Merger Best for Official Payments and Its Shareholders?

Robbins Arroyo LLP's investigation focuses on whether the board of directors at Official Payments is undertaking a fair process to obtain maximum value and adequately compensate its shareholders in the merger.  As an initial matter, the $8.35 consideration represents a discount of 1.80% based on Official Payment's closing price on September 20, 2013.  This discount is substantially below the average one-day premium of 50.16% for comparable transactions in the last five years.     

Further, on September 2, 2013, Official Payments announced the company's earnings for its third quarter 2013, reporting increases in revenue from continuing operations of $45.8 million for its fiscal third quarter 2013, an increase of $6.6 million, or 17%, compared to its fiscal third quarter 2012.  Further, net revenue was $13.2 million this third quarter compared to $11.8 million for the third quarter 2013, an increase of $1.4 million or 12%.  With a $2 million increase in adjusted EBITDA over last year, Alex P. Hart, President and Chief Executive Officer, stated, "We're pleased to report positive Adjusted EBITDA from continuing operations for our seventh consecutive quarter and positive earnings per share for the first time in several years.  Our platform consolidation project remains on target to be substantially complete by the end of the calendar year.  We expect significant savings from this project in terms of both improved operational efficiency and reduced capital expenditures for the next fiscal year.  We're confident that we've positioned ourselves for even better financial results in fiscal year 2014."

Given these facts, Robbins Arroyo is examining Official Payment's board of directors' decision to sell the company to ACI now rather than allow shareholders to continue to participate in the company's continued success and future growth prospects, and whether they are seeking to benefit themselves.  

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.24 0.00%
FB $117.81 0.00%
GOOG $701.43 0.00%
TSLA $211.53 0.00%
YHOO $36.94 0.00%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs