Paducah financial technology company CSI is acquired in a $1.6 billion deal

Financial technology company from Paducah Computer Systems Incorporated announced in a release on Monday it is acquired from Centerbridge Partners LP and Bridgeport Partners in an all-cash deal valued at $1.6 billion.

After the transaction, the company, which it says provides payment processing for many local banks and credit unions and other regulatory services for nearly 2,600 customers in the United States and 30 other countries, will become privately owned.

CEO and President David Culbertson says the deal will retain CSI’s Paducah headquarters while accelerating its growth while also representing a boon for shareholders.

“We have had a lot of success in our 57-year history. And this acquisition allows us to continue this great tradition,” the President/CEO said in an interview on Monday. “This transaction also allows us to make additional investments, both in how we grow the business organically and in acquisitions that allow us to truly take the company to a new level in terms of what we can do be.”

Culbertson does not anticipate any personnel changes that will affect the company’s nearly 1,300 employees — 250 of whom are based at CSI’s Paducah headquarters.

“What happens in the near term will change very little for our customers, our employees, and the communities in which we live and work. [They] will not change much at CSI,” he said. “The new ownership group’s commitment to staying in Paducah is significant. Our commitment to this community is unwavering.”

The Board of CSI unanimously approved The deal. Company founder and Chairman Emeritus John A. Williams was among those who voted in favor of the transaction.

“Having founded CSI nearly six decades ago, I am pleased to support this transaction as it will provide shareholders with immediate cash at a compelling premium,” said Williams. “Furthermore, I believe our customers, employees and communities can be assured that – based on their history – current management, Centerbridge and Bridgeport will continue the legacy of CSI.”

The transaction is expected to close in the fourth quarter of 2022, subject to shareholder approval and regulatory review. Shareholders are expected to receive $58 per share from the acquisition. The purchase price per share represents a 53% premium to the closing price of CSI stock on the last full trading day prior to the announcement of the agreement.

The publication describes Centerbridge Partner as “a global private investment firm with multiple strategies and extensive experience investing in financial services and technology” and Bridgeport Partners “a private investment firm with a long-term, value-driven approach.”

Representatives of all acquiring companies expressed optimism about the future of CSI in the press release.

“Supporting quality businesses is at the core of our strategy at Centerbridge, and we have an extensive track record of doing so in both the financial services and technology spaces,” said Jared Hendricks, senior managing director at Centerbridge, and Ben Jaffe, managing director at center bridge. “We look forward to working with CSI as we share a like-minded commitment to innovation for customers and happiness for employees.”

Bridgeport founder Frank Martire said he’s been following CSI “closely for decades.”

“CSI has always been known for its commitment to its customers, employees, partners and the communities it serves – a reputation that Centerbridge and Bridgeport aim to uphold as we work with David and his team to advance the company’s growth initiatives to implement,” Martire said.

CSI makes a financial contribution to WKMS.

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