New York City-based private investment firms Centerbridge Partners and Bridgeport Partners are buying end-to-end fintech and regtech firm Computer Services, Inc., for $1.6 billion in cash.
Under the agreement, CSI shareholders will receive $58 per share when the transaction closes, which is expected in the fourth quarter of this year. CSI is expected to continue operating under CEO David Culbertson and the company’s leadership team. Company headquarters will remain in Paducah, Ky.
“After a thorough strategic review, the CSI board of directors is very pleased to announce this transaction and believes it is in the best interests of our shareholders,” said CSI Chair Steve Powless.
Culbertson said the sale will allow the firm to “expand and diversify our product offerings, transform our technology to leverage the scale and resilience of the public cloud, and deploy optimized fintech and regtech solutions through our open banking and Banking-as-a-Service initiatives.”
Founded more than 57 years ago, CSI has nearly 2,600 customers in the United States and 30 other countries.
Bridgeport Founder Frank Martire spoke highly of CSI, saying the firm “has always been known for its commitment to its customers, employees, partners and the communities it serves — a reputation that Centerbridge and Bridgeport are committed to maintaining while we work together with [Culbertson] and his team to implement the company’s growth initiatives.”