ACI Worldwide completes the sale of its online business banking solutions


$100 million cash proceeds enable future investments

Focuses more on core business

Improves growth and financial flexibility

MIAMI, September 01, 2022–(BUSINESS WIRE)–ACI Worldwide (NASDAQ: ACIW), a global leader in business-critical real-time payment software, today announced the completion of the previously announced sale of its enterprise online banking solutions to One Equity Partners (“OEP”), a private equity firm, for $100 million in cash. The sale includes customer contracts, technology assets and intellectual property. Employees dedicated to these solutions migrated to the new company.

Divestiture aligns with ACI’s three-pillar strategy, enables greater focus on faster growing core business areas and immediately generates cash to invest in the future.

“I am pleased to announce that we have successfully completed the sale of our online business banking solutions and I am encouraged that online business banking customers and employees will be served by a strategically focused company. on the evolution of the company,” said Odilon. Almeida, President and CEO of ACI Worldwide.

“Our focused and disciplined execution of our strategy continues to gain traction, consistent with our commitment to maximizing shareholder value. The divestiture improves our growth rates and provides additional flexibility to invest in growth and return capital to shareholders. through share buybacks,” he said.

“Our core business is resilient in a turbulent environment. This divestment improves our growth profile and facilitates our progress towards achieving our revenue growth target of 7% to 9% by 2024,” concluded Almeida.

The company has repurchased 2.7 million shares for $80 million year-to-date through Aug. 31, 2022, with $136 million remaining on its share repurchase authorization.

ACI is adjusting its guidance for the full year and third quarter of 2022 to reflect the divestment of online banking solutions.

Advance advice

Impact of assignment

Adjusted guidance

Q3 2022

Revenue

$310 million to $325 million

$4 million

$306 million to $321 million

Adjusted

$50-65 million

$1 million

$49 million to $64 million

EBITDA

Full year 2022

Revenue

$1.415 billion to $1.435 billion

$15 million

$1.4 billion to $1.42 billion

Adjusted

$400-415 million

$5 million

$395 million to $410 million

EBITDA

About ACI Worldwide

ACI Worldwide is a global leader in mission-critical real-time payment software. Our proven, secure and scalable software solutions enable large enterprises, fintechs and financial disruptors to process and manage digital payments, power omni-commerce payments, present and process bill payments and manage the fraud and risk. We combine our global footprint with a local presence to drive the real-time digital transformation of payments and commerce.

© Copyright ACI Worldwide, Inc. 2022.

ACI, ACI Worldwide, ACI Payments, Inc., ACI Pay, Speedpay and all ACI product/solution names are trademarks or registered trademarks of ACI Worldwide, Inc., or one of its affiliates, under the United States, other countries, or both. Trademarks of other referenced parties are the property of their respective owners.

About One Equity Partners

One Equity Partners (“OEP”) is a middle-market private equity firm focused on the industrials, healthcare and technology sectors in North America and Europe. The firm builds market-leading businesses by identifying and executing transformative business combinations. OEP is a trusted partner with a differentiated investment process, a broad and experienced team, and an established track record driving long-term value for its partners. Since 2001, the company has completed more than 300 transactions worldwide. OEP, founded in 2001, spun off from JP Morgan in 2015. The company has offices in New York, Chicago, Frankfurt and Amsterdam. For more information, visit www.oneequity.com.

To supplement our financial results presented on a GAAP basis, we use the non-GAAP measures shown in the tables, which exclude significant transaction-related expenses, as well as other significant non-cash expenses such as depreciation, amortization and equity-based actions. compensation, which we believe is useful in understanding our past financial performance and future results. The presentation of these non-GAAP financial measures should be considered in addition to our GAAP results and is not intended to be considered in isolation or as a substitute for financial information prepared and presented in accordance with GAAP. Management generally compensates for limitations in the use of non-GAAP financial measures by relying on comparable GAAP financial measures and providing investors with a reconciliation of the non-GAAP financial measures only in addition to and in conjunction with the results presented in accordance with GAAP.

We believe these non-GAAP financial measures reflect an additional way of viewing aspects of our operations which, when examined with our GAAP results, provide a more complete understanding of the factors and trends affecting our business. Certain non-GAAP measures include:

• Adjusted EBITDA: net profit (loss) plus income tax expense (benefit), net interest income (expense), net other income (expense), depreciation, amortization and stock-based compensation , as well as significant transaction-related expenses. Adjusted EBITDA should be seen as a supplement, rather than a substitute, for net income (net loss).

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements based on current expectations that involve a number of risks and uncertainties. Generally, forward-looking statements do not relate strictly to historical or current facts and may include words or phrases such as “believes”, “will”, “expects”, “anticipates”, “has ‘intention’ and words and phrases of similar impact. . Forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Forward-looking statements in this press release include, but are not limited to: (i) expectations that our focused and disciplined execution of our strategy will continue to gain momentum consistent with our commitment to maximizing shareholder value, (ii) expectations that the divestiture improves our growth rates and provides additional flexibility to invest in growth and return capital to shareholders through share buybacks, (iii) expectations that this divestment improves our growth profile and facilitate our progress towards achieving our revenue growth target of 7% to 9% by 2024, and (iv) revenue and adjusted EBITDA guidance for the third quarter and the year 2022.

All of the foregoing forward-looking statements are expressly qualified by the risk factors discussed in our filings with the Securities and Exchange Commission. These factors include, but are not limited to, increased competition, business interruptions or failure of our information technology and communications systems, security breaches or viruses, our ability to attract and to retain senior executives and qualified technical employees, future acquisitions, strategic partnerships and investments, implementation and success of our three-pillar strategy, impact if we convert all or part of the on-site licenses from the term model to subscription model, anti-takeover provisions, exposure to credit or operational risks arising from certain payment funding methods, customer reluctance to switch to a new supplier, our ability to adequately defend our intellectual property, litigation , our offshore software development activities, the risks of operating internationally, including fluctuations in rates x exchange rates, adverse changes in the global economy, the compliance of our products with applicable laws, government regulations and industry standards, the complexity of our products and services and the risk that they may contain defects hidden, complex regulations applicable to our payment activities, our adherence to privacy regulations, our involvement in time-consuming and costly investigations, lawsuits and other legal proceedings, exposure to unknown tax liabilities , consolidations and failures in the financial services industry, volatility in our stock price, demand for our products, inability to obtain renewals of customer contracts or to obtain such renewals on favorable terms, delay or cancellation of customer projects or inaccurate project completion estimates, impairment of our good will or our intangible assets, the accuracy of management’s backlog estimates, the cyclical nature of our revenues and earnings, and the accuracy of forecasts due to the concentration of revenue-generating activities in recent weeks of each quarter, restrictions and other financial covenants in our debt agreements, our existing debt levels t, the COVID-19 pandemic and events beyond our control, including but not limited to natural disasters, wars and The epidemics. For a detailed discussion of these risk factors, parties relying on forward-looking statements should consult our filings with the Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K and our quarterly reports on Form 10-Q

See the source version on businesswire.com: https://www.businesswire.com/news/home/20220831005897/en/

contacts

For more information:
Investors
John Kraft
SVP, Head of Strategy and Finance
john.kraft@aciworldwide.com


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