With the closing of the transaction, CSI has become a private company, continuing its operations from its headquarters in Paducah, Kentucky, with no changes to the leadership team
Centerbridge, Bridgeport complete purchase of CSI. (Credit: S K from Pixabay)
US-based private equity firms Centerbridge and Bridgeport have completed their previously announced acquisition of fintech and regtech solutions provider Computer Services (CSI).
In August this year, Centerbridge and Bridgeport signed an agreement to acquire CSI.
Under the terms of the agreement, the companies purchased CSI at a price of $58 per share, in an all-cash transaction valued at around $1.6bn.
With the closing of the transaction, CSI has become a private company, with its common shares ceased from trading, and de-listed from the over-the-counter stock market OTCQX.
The company continues its operations from its headquarters in Paducah, Kentucky, with no changes to the leadership team, including the CEO and president David Culbertson.
As part of the transaction, Bridgeport founder Frank Martire was appointed as board chairman, while Centerbridge senior managing director Jared Hendricks, and managing director Ben Jaffe were appointed as board members.
Culbertson said: “As a private company, our goal is to grow organically and expand our product portfolio to best serve the financial services industry.
“We believe Centerbridge and Bridgeport will support our goals for innovation and share in our commitment to employee satisfaction, community engagement and customer service.
“We are pleased to have partners that can provide insight and resources to help CSI continue to grow and evolve our capabilities to better serve our customers.”
Established in 2005, Centerbridge has around $36bn in capital under management, as of 30 September 2022, with offices in New York and London.
Founded by Frank Martire, Bridgeport is led by operators and investors with decades of experience in building and leading companies in the public and private markets.
Both companies bring years of experience across a variety of industries, including community banking.
CSI offers core processing, digital banking, cybersecurity, compliance, payments processing, and document distribution solutions to financial institutions and corporates.
Its acquisition by Centerbridge and Bridgeport is expected to help the company to advance its technologies for the public cloud, and enhance the speed-to-market and scalability of its solutions.
Also, it allows CSI to expand its investment in research and development, complementary product partnerships and strategic acquisitions.
Raymond James & Associates, and Moelis & Co. served as co-financial advisors, Nelson Mullins Riley & Scarborough as legal counsel to CSI, on the transaction.
Goldman Sachs and Jefferies served as financial advisors to Centerbridge and Bridgeport, while Kirkland & Ellis served as legal counsel to Centerbridge, Aviditi Financial as a capital markets advisor, and Weil, Gotshal & Manges as legal counsel to Bridgeport.
Frank Martire said: “I have followed CSI’s trajectory for years and am confident its robust expertise in the community banking sector makes it primed to deliver expanded resources that will help its customers not only remain competitive, but truly grow.
“Like Bridgeport, CSI employees care deeply about and understand the great value in the work they do and what they can deliver to CSI customers over the next decade.”