Investment firms Centerbridge Partners and Bridgeport Partners are acquiring financial technology company Computer Services Inc. in a $1.6 billion deal.

CSI announced the acquisition this morning. The deal’s $1.6 billion price tag values the company at $58 per share, a 53% premium to the Friday closing price of its stock. 

Founded in 1965, CSI provides software products that banks use to coordinate their day-to-day business operations. CSI also offers professional services designed to help financial institutions manage their information technology infrastructure.

The company’s software portfolio includes a cloud-based platform that banks use to process transactions for clients, as well as support internal analytics initiatives. Another CSI product, NuFund, enables banks to give their customers the option of opening accounts through a web-based interface. CSI’s other software products are designed to ease tasks such as processing loans and complying with financial regulations.

Alongside software, the company provides IT management services. One of CSI’s focus areas is assisting banks with cybersecurity: The company can help a bank monitor its network for hacking attempts, block malware and patch internal applications when cybersecurity updates are released. 

CSI’s professional services business manages other IT tasks as well for customers. The company helps banks manage their public cloud environments, back up business records and recover data in the event of an outage.

Over the years, CSI has built up a customer base of nearly 2,600 organizations in more than 30 countries. The company works not only with banks, but also healthcare companies and other organizations that operate in regulated industries.

To continue growing its customer base, CSI plans to launch new products following the completion of its acquisition by Centerbridge Partners and Bridgeport Partners. The investment firms expect to close the transaction in the fourth quarter. CSI is set to continue operating under the leadership of President and Chief Executive Officer David Culbertson.

“Working together after the closing, CSI intends to execute our strategic plans to expand and diversify our product offerings, transform our technology to leverage the scale and resiliency of the public cloud, and deploy optimized fintech and regtech solutions through our open banking and banking-as-a-service initiatives,” Culbertson said.

CSI generated $81 million in revenue last quarter, a 5.7% improvement over the same time a year ago. The company’s net income rose 2.3%, to $14.7 million.

The sale of CSI continues a recent series of big-ticket acquisitions in the financial technology market. Last year, Goldman Sachs Group Inc. inked a $2.24 billion deal to acquire GreenSky Inc., a major player in the so-called buy now, pay later segment. Visa Inc. earlier acquired banking software provider Tink AB for more than $2 billion. 

Image: CSI