The BISYS Group Inc. said it plans to sell its information services group to Open Solutions Inc. of Glastonbury, Conn., a provider of data processing technologies for banks and credit unions.
The group includes its banking solutions, document solutions and corporate financial solutions business.
The transaction, announced last week, is subject to certain closing and regulatory conditions. It is expected to close in BISYS' second fiscal quarter ending Dec. 31, 2005.
BISYS said total cash consideration in the transaction would be approximately $470 million, subject to adjustment. Net proceeds after closing costs and the payment of taxes are expected to be approximately $300 million.
BISYS said it anticipates using the net proceeds from the sale and cash on hand for the retirement of its existing term loan and convertible notes.
Russ Fradin, BISYS president and chief executive officer, said in a statement that the sale would allow the firm to focus on its strategy of investing in and expanding its investment services and insurance services businesses, which includes wholesale distribution of commercial property-casualty insurance, long term care, disability, annuity products and life insurance.
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