Why Centerbridge and Bridgeport Are Buying Computer Services (CSVI) For $1.6 Billion

By Amit Chowdhry ● Aug 22, 2022
  • Computer Services, Inc. (CSI) (CSVI) announced that it has entered into a definitive agreement to be acquired for $1.6 billion. These are the details.

Computer Services, Inc. (CSI) (CSVI), a leading provider of end-to-end fintech and regtech solutions, announced it has entered into a definitive agreement to be acquired by Centerbridge Partners, L.P. and Bridgeport Partners, a private investment firm with a long-term and value-oriented approach in an all-cash transaction valued at approximately $1.6 billion, or $58 per share. The transaction follows a robust strategic review process and was unanimously approved by CSI’s board of directors.

Under the terms of the agreement, CSI shareholders are going to receive $58 per share in cash upon the closing of the transaction, which is expected to occur in the fourth quarter of the calendar year 2022, subject to customary closing conditions, including CSI shareholder approval and regulatory review. And the per-share purchase price represents a 53% premium to CSI’s closing stock price on Aug. 19, 2022, the last full trading day before the agreement was announced, and a premium of 54.4% over CSI’s 30-day volume-weighted average share price.

In connection with the transaction, all members of the CSI board of directors and Founder and Chairman Emeritus John A. Williams have entered into a voting and support agreement to vote in favor of the transaction. 

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

KEY QUOTE:

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

— Steve Powless, CSI’s Chairman of the Board

“Having formed CSI nearly six decades ago, I am pleased to support this transaction as it will provide shareholders with immediate cash at a compelling value premium. In addition, I believe that our customers, employees and communities can rest assured that—based on their history—current management, Centerbridge and Bridgeport will continue CSI’s legacy.”

— Founder and Chairman Emeritus John A. Williams 

“For more than 57 years, CSI has been known as a leader in innovation and customer service. Centerbridge and Bridgeport have deep experience in technology and financial services as owners and operators. 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.” 

— David Culbertson, CSI’s President and CEO

“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. We are excited to work with CSI, as we share a like-minded commitment to innovation for customers and satisfaction for employees. CSI has a long, distinguished history in Paducah, Kentucky, as well as other local communities across the nation. We plan to continue our commitment and investment in these communities to further foster the CSI legacy.”

— said Jared Hendricks, Senior Managing Director at Centerbridge and Ben Jaffe, Managing Director at Centerbridge

“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. CSI 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 David and his team to implement the company’s growth initiatives.”

— Frank Martire, Bridgeport’s Founder