ACI Worldwide, a Naples, Florida-based payments solution provider, as per recent statement on Thursday, Feb. 28th, 2019, announced to acquire Speedpay, Western Union’s US bill pay business, for $750 million in cash.
The ACI & Speedpay merger is expected to serve over 4,000 US customers with the bill pay solution, furthermore, the merger targets sectors such as consumer finance, healthcare, insurance, higher education, utilities, government, and mortgages.
ACI plans to unify the Speedpay and UP Bill Payment platforms into a single bill payment platform.
“This acquisition reinforces ACI’s “any payment, every possibility” vision and accelerates our ability to capitalize on the growing global payment transaction opportunity over the next five years. It presents a great opportunity for ACI to strengthen and add scale to our On Demand business, and provides fuel for growth and increased R&D investment which will benefit both ACI and Speedpay customers,” stated Phil Heasley, president, and CEO, ACI Worldwide. “We are excited to welcome the talented Speedpay team into the ACI family. With decades of proven success, the ACI and Speedpay teams have a deep understanding of bill payments, and the combination of our portfolios delivers an unmatched value proposition.”
Hikmet Ersek, president and CEO of Western Union, stated, “Divesting the Speedpay business allows us to concentrate our resources on our cross-border money movement strategies and monetize a non-core asset for our shareholders”. Adding further Ersek said, “Our strategy remains focused on expanding our digital services, leveraging our platform to unlock new cross-border, cross-currency payments opportunities, and generating additional operating efficiencies.”
The merger acquisition is subject to customary closing conditions and regulatory approvals and is expected to close by the end of Q2 2019.