Magazine article American Banker

ACI to Buy US Software, Bulking Up in Funds Transfer Market

Magazine article American Banker

ACI to Buy US Software, Bulking Up in Funds Transfer Market

Article excerpt

ACI Holding Inc., the parent of Applied Communications Inc., has announced that it will acquire US Software Inc.

Acquisition of the Carter Lake, Iowa, company will strengthen ACI's position in the market for electronic funds transfer software. Terms of the deal were not disclosed.

Omaha-based ACI Holding was formed to acquired ACI from Tandem Computers Inc., Cupertino, Calif. ACI is the largest developer of software for Tandem's computers, which are designed to support on-line transaction environments such as ATM and point of sale networks.

ACI Holding plans to complete the Tandem deal by Dec. 31, after which ACI will be owned by a combination of managers, other employees, and equity partners.

The US Software acquisition will be effective the first day after the Tandem buyout is finalized. ACI and US Software, with combined revenues in excess of $80 million, will employ nearly 700 people.

ACI hopes the acquisition of US Software will give it entrance into markets with software that operates on computers other than Tandem's. "We believe this purchase will continue to reinforce our position as a market leader in on-line processing software for electronic funds transfer," said William Fisher, president of ACI.

Prior to the deal, the two companies competed in the market for electronic funds transfer software, primarily providing applications software supporting ATM and point-of-sale networks.

Although US Software is only one-tenth the size of ACI, Mr. …

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