CSI agrees $1.6bn deal with Centrebridge and Bridgeport

November 2022 | DEALFRONT | PRIVATE EQUITY & VENTURE CAPITAL

Financier Worldwide Magazine

November 2022 Issue

In a $1.1bn deal that will take the company private, end-to-end FinTech and RegTech solutions provider Computer Services, Inc. is to be acquired by global, multi-strategy private investment firm Centerbridge Partners, L.P. and private investment firm Bridgeport Partners.

Under the terms of the agreement, CSI shareholders will receive $58 per share in cash upon closing of the transaction, which is expected to occur in the fourth quarter of 2022, subject to customary closing conditions, including CSI shareholder approval and regulatory review.

Upon completion of the transaction, CSI will become a privately held company, and its common stock will no longer be listed on any public market.

“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 Steve Powless, chairman of the board at CSI. “In working with Centerbridge and Bridgeport, CSI plans to carry on its tradition of excellence and continue to invest in its product roadmap to bring more solutions to market faster.”

As the leading provider of US core banking systems, CSI’s long history of delivering end-to-end, market-leading solutions includes serving nearly 2600 customers in the US and in 30 other countries while pioneering innovative technology advancements.

“Upon completion of the transaction, CSI intends to continue operating under the leadership of chief executive David Culbertson and the CSI leadership team, with its headquarters expected to remain in Paducah, Kentucky,” added Mr Powless.

Closing of the transaction is subject to customary conditions, including approval by CSI’s shareholders and the receipt of regulatory approvals.

“Supporting high-quality companies is central to our strategy at Centerbridge, and we have a deep track record of doing so in both financial services and technology,” said Jared Hendricks, senior managing director at Centerbridge. “We are excited to work with CSI, as we share a like-minded commitment to innovation for customers and satisfaction for employees.”

Founded in 2005 and with offices in New York and London, Centerbridge is dedicated to partnering with world-class management teams across targeted industry sectors and geographies. Co-acquirer Bridgeport has decades of experience successfully building and leading companies in the public and private markets.

“I am pleased to have this opportunity to partner with Centerbridge on the acquisition of CSI, a company that I have followed closely for decades and have respected as a real leader in financial services and technology,” said Frank Martire, founder of Bridgeport. “CSI has always been known for its commitment to its customers, employees, partners and the communities it serves.”

Acting as co-financial advisers to CSI are Raymond James & Associates, Inc. and Moelis & Company LLC, with Nelson Mullins Riley & Scarborough LLP acting as legal counsel. Goldman Sachs & Co. LLC and Jefferies LLC are acting as financial advisers to Centerbridge and Bridgeport. Kirkland & Ellis LLP is serving as legal counsel to Centerbridge. Aviditi Financial, LLC is serving as a capital markets adviser to Bridgeport with Weil, Gotshal and Manges LLP serving as legal counsel.

“CSI has a long, distinguished history in Paducah, Kentucky, as well as other local communities across the nation,” concluded Ben Jaffe, managing director at Centerbridge. “We plan to continue our commitment and investment in these communities to further foster the CSI legacy.”

Fraser Tennant