D+H Closes Acquisition Of HFS

Canadian financial services provider Davis + Henderson Corp. (D+H) has closed its acquisition of Harland Financial Solutions (HFS) from parent company Harland Clarke Holdings Corp.

The $1.2 billion all-cash deal expands D+H's offerings for online and mobile banking, branch automation and commercial lending and grows its client base to more than 6,200. What's more, D+H gains the rights to HFS' PhoenixEFE core processing platform, used by thousands of community banks in the U.S.

As per a press release, the all-cash transaction was funded by way of a bought deal prospectus offering of subscription receipts and 6% extendible convertible unsecured subordinated debentures for gross proceeds of $690.2 million and from borrowings under a new committed credit facility.

The stock purchase agreement pertaining to the acquisition was signed and announced on July 23.

"The enthusiastic support received in the capital markets and in our client markets since we announced the transaction is much appreciated and reflects the clear value creation potential of this transformational acquisition," said Gerrard Schmid, CEO of D+H. "We look forward to using our complementary technologies and expanded capabilities to meet the broader needs of our combined client base of 6,200 and to forge an even stronger value proposition for the future as we concentrate on growing our presence among the 13,000 banks and credit unions who form our available market."

Toronto-based D+H, which serves the needs of credit unions, community banks and other financial institutions, is one of the fastest rising companies on the IDC Financial Insights Annual FinTech 100 list. In addition to serving the Canadian market, it also supports more than 1,700 banks and credit unions in the U.S. HFS, meanwhile, has about 5,400 bank and credit union clients in the U.S.


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