Payment systems provider ACI Worldwide announced on Monday that it would acquire Official Payments Holdings, a provider of electronic bill payment solutions, in an all-cash transaction valued at approximately $109 million.
“This acquisition marks the next step in the evolution of electronic bill payments, an industry in which ACI Worldwide is at the forefront,” Official Payments CEO Alex Hart said. “I’m excited about integrating Official Payments into the broader ACI Universal Payments strategy and portfolio. This provides the opportunity to develop new capabilities previously unmet in the rapidly growing EBPP sector.”
Georgia-based Official Payments provides e-bill payment solutions for federal, state and local governments, as well as municipal utilities, charitable organizations and higher education institutions. The company has more than 3,000 customers and processes over $9 billion in volume every year.
“Official Payments’ proven team, loyal user base and vertical expertise make it an ideal match for ACI,” ACI President and CEO Philip Heasley said. “The acquisition will further extend ACI’s leadership in the fast-growing EBPP space, expanding our portfolio across key sectors including federal, state and local governments, municipal utilities, higher education institutions and charitable giving organizations. The acquisition also reaffirms our customer model and supports our corporate Universal Payments strategy of providing a complete set of end-to-end payment services, all enabled by our Universal Payments Platform.”
The deal is expected to close on or before Oct. 4, and the transaction is expected to be accretive to full-year earnings in 2014.