ACI WORLDWIDE COMPLETES ACQUISITION OF RETAIL DECISIONS (RED)
With ReD, ACI better equips multiple segments globally as they address disruption
in the ecommerce market
ACI Worldwide (NASDAQ: ACIW), a leading global provider of electronic payment and banking solutions, announced that it has completed the acquisition of Retail Decisions (ReD), a leader in fraud prevention solutions. Under the terms of the agreement, ACI Worldwide acquired ReD for an all-cash purchase price of $205 million.
Brookwood, UK-based ReD is a leading ecommerce and fraud prevention company serving the payments industry. Its suite of solutions helps customers drive up revenues while reducing fraud losses and increasing the efficiency of their fraud management teams. ReD serves more than 1,500 retailers, issuers, acquirers, processors and switch networks globally.
“We are excited to welcome ReD into the One ACI organisation. The addition of ReD’s talented team and product portfolio enhances our Universal Payments strategy and further strengthens our leadership position in the fast-growing payments risk management space,” said Philip Heasley, President and CEO, ACI Worldwide. “The combination of ACI and ReD results in a powerful merchant retail solution that will drive our market leadership—providing an unrivaled customer experience–consistent and unified anytime, anywhere and through any access point or device.”
Commitment to customers
ACI also announced that consistent with its long-standing lifecycle management policy, the company is committed to maintaining multi-year roadmaps and contractual commitments to ReD’s customers. ReD’s customers will benefit from ACI’s size and scale to support current and future initiatives. ACI invests a high percent of revenues in R&D, significantly ahead of industry averages. The company also provides a world-class hosting environment, as well as global 24x7x365 support.
Updated 2014 guidance
As previously disclosed, we expect ReD will generate approximately $18 million in revenue and $4 million in adjusted EBITDA for the remainder of 2014. Consequently, we now expect to generate non-GAAP revenue in a range of $1.078 to $1.098 billion for the full year 2014. Adjusted EBITDA expectations are now a range of $294 to $304 million. We expect non-GAAP revenue of $254 to $264 million in the third quarter.