LEXPERT MAGAZINE
|
MARCH 2016 35
| 2015 DEALMAKERS |
2015
INFORMATION
TECHNOLOGY
DEAL OF THE YEAR
DH Corporation
acquires Fundtech Ltd.
for US$1.25 billion
With business increasingly going global, fi-
nancial services are as well. When Toronto-
based financial-technology provider DH
Corporation acquired Fundtech Ltd. for
US$1.25-billion in cash, it was with both
eyes squarely on expanding its suite of of-
ferings for global financial institutions and
large US banks.
Fundtech, which was privately held, has
a wide line of transaction-banking soware
specifically designed for global and domes-
tic payments as well as for financial mes-
saging, corporate cash management and
merchant services. Its roughly 1,200 clients
include global money-centre banks and
mid-sized banks as well as credit unions,
non-bank financial institutions and even
central banks and corporations.
It has 19 offices globally, including cen-
tres in the US, UK, India, Israel and Swit-
zerland. DH Corporation (formerly Davis
+ Henderson Corp.) pegs the estimated
annual IT spend of banks that operate
in Fundtech's existing markets at US$5‒
US$6 billion.
DH Chief Executive Officer Gerrard
Schmid said, in announcing the acquisi-
tion, that it puts the Canadian company "at
the forefront of these trends globally, pro-
viding us with a market-leading soware
platform with established scale in mission-
critical payment technology."
Post-acquisition, DH will service eight
of the top 10 and 32 of the world's top 50
banks along with about 190 of the top 300
US banks. DH says synergies from the pur-
chase are expected to be accretive within
the first year.
