Advised Mosaic Software, a provider of electronic funds transfer and financial services transaction processing software, on its sale to S1 Corporation
Nov 2004
acquired by
  • Sector: Digital Banking & Payments; Fintech, WealthTech & InsurTech
  • Deal Type: Strategic Deals; Venture Capital Exits
  • Engagement type: Sellside
  • Size: <$200m

– Mosaic is a fast growing provider of electronic funds transfer and financial services transaction processing software

– The company has a staff of 190, including more than 100 software developers, in offices in the US, UK and Australia

– S1 Corporation (NASDAQ: SONE) provides Web-based front-office management and operations software to financial services customers such as Bank of America, Scotiabank and KBC

– S1 operates 29 offices in 15 countries, with approximately 1,300 employees worldwide

– The transaction builds on S1’s existing product portfolio with the addition of a leading financial transaction solution and an ATM channel for its existing customer base. Mosaic provides cross selling opportunities to a customer base of approximately 210 financial institutions and retailers in more than 40 countries, including Honda Federal Credit Union, Standard Bank South Africa, Mercantile Bank Limited, 7-Eleven and Marks and Spencer

– The transaction also gives S1 increased international presence, an enhanced customer base and enables the further development of its enterprise strategy

– With the acquisition of Mosaic, S1 is the only vendor in the financial services space that can enable institutions to extend multi-channel integration across all of their primary customer interaction channels

– Arma Partners helped to successfully maximize value for Mosaic’s shareholders with an exit value of up to 2.6x historic revenue (based on published industry analyst expectations for CY2003 revenue)

– This valuation represents the highest recent exit multiple in the sector and a premium to the relevant trading multiples of the most comparable publicly traded companies

– Arma Partners also helped to increase the certainty of proceeds for Mosaic’s shareholders through the negotiation of a short earn-out period (c. six months from the closing of the transaction)