US firm buys out CashTech Solutions

CashTech Solutions India Pvt Ltd, a cash management solutions provider, has been acquired by US-based Fundtech Ltd for $3.3 million in cash, plus another $3.7 million over a three-year period depending on performance.

CashTech said a definitive acquisition agreement has been signed and the transaction is expected to close within two weeks.

Under the terms of the agreement, the Nasdaq-listed Fundtech will pay $2.9 million in cash at the close of the transaction and an additional $0.4 million in cash within 180 days of the closing. Fundtech will pay an additional amount of up to $3.7 million in cash over three years, contingent upon the financial performance of CashTech.

Reuven Ben Menachem, CEO of Fundtech, said, "The acquisition of CashTech will enhance Fundtech's capabilities and help us reach our long-term goal of becoming a global powerhouse in financial technology. This transaction will expand our product lines, broaden our geographic coverage, deepen our management resources and add a large pool of software developers with deep domain knowledge. We welcome CashTech's employees and their clients into the Fundtech family and look forward to our mutual success."

CashTech will continue to operate as an independent subsidiary and will continue to invest in its product line. The company's strength in domain, technology and product development will be further enhanced by Fundtech`s distribution capabilities and financial strength.

R N Iyer, CEO of CashTech Solutions, said "The companies have complementary products and distribution capabilities, and share a strong entrepreneurial spirit and a passion for excellence. Our employees will share in new opportunities and our clients will benefit from the strong domain leadership of the combined entity."