Transaction Systems Buys P&H

It pays $150 million in cash.
Author:
Publish date:

Transaction Systems Architects

(TSAI)

, an enterprise e-payments software and services provider, said Tuesday it plans to acquire Web-based enterprise business banking solutions provider

P&H Solutions

for $150 million in cash.

The company expects the deal to contribute revenue of $40 million to $42 million and to be dilutive to GAAP earnings by 14 cents to 16 cents a share for the fiscal year ending Sept. 30, 2007. The acquisition will be accretive to earnings by about 10 cents a share in fiscal 2008.

The acquisition is expected to close in September 2006 and will be financed by a combination of Transaction Systems cash and a portion of a $150 million revolving credit facility provided by Wachovia Securities.

The company's stock was down 47 cents, or 1.4%, to $34.30 Tuesday.

This story was created through a joint venture between TheStreet.com and IRIS.