CSI becomes private company and delists from OTCQX market
Computer Services, Inc. (CSI), a leading provider of end-to-end fintech and regtech solutions, announced today the completion of its acquisition by private equity firms Centerbridge Partners, L.P. (Centerbridge), a global, multi-strategy private investment firm with deep experience investing in financial services and technology, and Bridgeport Partners (Bridgeport), a private investment firm with a long-term, value-oriented approach.
The acquisition, previously announced Aug. 22, 2022, closed in an all-cash transaction valued at approximately $1.6 billion, with a purchase price of $58.00 per share. CSI’s shareholders approved the transaction on Nov. 9, 2022. With the completion of the acquisition, CSI became a private company and its common stock ceased trading. It will no longer be listed on the OTCQX market.
As digital transformation sweeps across the banking landscape, the partnership with Centerbridge and Bridgeport will enable CSI to drive value for its customer base of community banks, fintech and regtech clients. The acquisition allows CSI to propel crucial advancements in its technologies for the public cloud, accelerate speed-to-market and increase the scalability of its solutions. It also supports the advancement of CSI’s mission to become the leading provider of regtech and fintech resources through expanded investment in research and development, complementary product partnerships and strategic acquisitions.
“As a private company, our goal is to grow organically and expand our product portfolio to best serve the financial services industry,” said David Culbertson, CEO and President of CSI. “We believe Centerbridge and Bridgeport will support our goals for innovation and share in our commitment to employee satisfaction, community engagement and customer service. We are pleased to have partners that can provide insight and resources to help CSI continue to grow and evolve our capabilities to better serve our customers.”
Enhancing products and experiences for CSI’s customers will remain the newly private company’s top priority, as well as deploying solutions for fraud and anti-money laundering, account origination, small-to-medium businesses and treasury management, managed services and cybersecurity, real-time payments, open banking, Banking-as-a-Service and more.
Centerbridge and Bridgeport bring years of experience driving growth and value for businesses across a variety of industries, including community banking.
“I have followed CSI’s trajectory for years and am confident its robust expertise in the community banking sector makes it primed to deliver expanded resources that will help its customers not only remain competitive, but truly grow,” said Frank Martire, Founder of Bridgeport. “Like Bridgeport, CSI employees care deeply about and understand the great value in the work they do and what they can deliver to CSI customers over the next decade.
“Our Board composition is an important component of our growth strategy,” continued Martire, adding that CSI plans to announce all members of the new Board in the coming weeks.
Martire will serve as Chairman of the Board, joining current board members, Steve Powless and Culbertson. Additions to the Board will also include Jared Hendricks, Senior Managing Director at Centerbridge, and Ben Jaffe, Managing Director at Centerbridge.
“We’re privileged to be a part of this new era of CSI’s Board of Directors, and to work closely with its members who are as experienced as they are passionate about financial services and technology,” said Hendricks. “At Centerbridge we work to carefully curate a portfolio with attractive opportunities for investors. Leveraging CSI’s historic success, our ambitious group can maximize the results of new partnerships, products and technology solutions for its customers.”
CSI has more than 57 years of experience as a service-first technology solutions provider. The company intends to continue operating under the leadership of Culbertson and the CSI leadership team, with its headquarters expected to remain in Paducah, Kentucky.
“Investing in companies with proven track records of quality and success is central to our strategy at Centerbridge,” said Jaffe. “Our partnership with CSI is a long-term investment, and we’re excited to apply the Centerbridge Value Engine to CSI’s existing legacy and push the company to its full potential of becoming the go-to partner for community banking and business technology solutions.”
Raymond James & Associates, Inc. and Moelis & Company acted as co-financial advisors to CSI, and Nelson Mullins Riley & Scarborough LLP acted as its legal counsel. Goldman Sachs Group, L.P. and Jefferies Group LLC acted as financial advisors to Centerbridge and Bridgeport. Kirkland & Ellis LLP served as legal counsel to Centerbridge. Aviditi Financial, LLC served as a capital markets advisor to Bridgeport. Weil, Gotshal & Manges LLP served as legal counsel to Bridgeport.
Computer Services, Inc. (CSI) delivers core processing, digital banking, managed cybersecurity, cybersecurity compliance, payments processing, print and electronic document distribution, and regulatory compliance solutions to financial institutions and corporate customers, both foreign and domestic. Management believes exceptional service, dynamic solutions and superior results are the foundation of CSI’s reputation and have resulted in the company’s inclusion in such top industry-wide rankings as IDC Financial Insights FinTech 100, Talkin’ Cloud 100 and MSPmentor Top 501 Global Managed Service Providers lists. CSI has also been recognized by Aite-Novarica Group, a leading industry research firm, as providing the “best user experience” in its AIM Evaluation: The Leading Providers of U.S. Core Banking Systems. For more information, visit csiweb.com.
Centerbridge Partners, L.P. is a private investment management firm employing a flexible approach across investment disciplines—private equity, private credit and real estate—in an effort to develop the most attractive opportunities for our investors. The firm was founded in 2005 and, as of September 30, 2022, has approximately $36 billion in capital under management with offices in New York and London. Centerbridge is dedicated to partnering with world-class management teams across targeted industry sectors and geographies. For more information, please visit centerbridge.com.
Bridgeport Partners is a private investment firm with a long-term, value-oriented approach to investing. Bridgeport invests proprietary capital and partners with strategic sources of capital with a long-term orientation to support management teams and companies through industry and economic cycles. The firm, founded by Frank Martire, is led by seasoned operators and investors with decades of experience successfully building and leading companies in the public and private markets. For more information, please visit bgptpartners.com.
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Brian K. Brown