FinTech and RegTech solutions provider Computer Services Inc. (CSI) is set to be purchased by a pair of investment firms for $1.6 billion, the company announced Monday (Aug. 22).
According to a news release, the CSI board has approved the all-cash sale of the 57-year-old operation to Centerbridge Partners, L.P. and Bridgeport Partners, in a deal that will turn CSI into a privately held company.
“After a thorough strategic review, the CSI board of directors is very pleased to announce this transaction and believes it is in the best interests of our shareholders,” said CSI board Chairman Steve Powless. “Upon completion of the transaction, CSI intends to continue operating under the leadership of CEO David Culbertson and the CSI leadership team, with its headquarters expected to remain in Paducah, Kentucky.”
The agreement — expected to close in the last quarter of the 2022 calendar year — will give CSI shareholders $58 per share in cash.
Founded in 1965, CSI provides services that include core processing, digital banking, managed cybersecurity, cybersecurity compliance, payments processing, print and electronic document distribution and regulatory compliance solutions to financial institutions and corporate customers in the U.S. and overseas.
Earlier this year, the company teamed up with the bitcoin company NYDIG to offer bitcoin services to community financial institutions.
“Powered by NYDIG, the new offering allows banking customers to buy, sell, and hold bitcoin directly within CSI’s digital banking platform, creating a safe and efficient way for users to manage their digital transactions,” the companies said in a news release.
NYDIG Chief Innovation Officer Patrick Sells said that although community banks are enthusiastic about offering bitcoin, they also recognize the need for a secure, compliant platform to retain their customers’ trust.
“By partnering with CSI, we can help community banks meet the growing demand for bitcoin while remaining compliant and secure with a seamless customer experience through the CSI digital banking platform,” he said.