Davis and Henderson acquires U.S. company for $1.2B
TORONTO – Financial technology provider Davis + Henderson Corp. has signed an agreement to buy U.S.-based Harland Financial Solutions for approximately US$1.2 billion in cash.
D+H says the deal for the financial services software company will give it access to 5,400 U.S. bank and credit union clients.
To pay of the deal, it says it has signed an agreement with a syndicate of underwriters to sell nearly $400.2 million in subscription receipts and $200 million in convertible unsecured subordinated debentures.
The company says a syndicate of existing and new lenders have also offered to provide funding for the acquisition.
D+H, likely best known as a provider of cheques for bank customers, has been diversifying its business in recent years.
HFS provides software and services that help banks with branch automation and business intelligence as well as loan compliance, loan servicing and risk management.
© The Canadian Press, 2013