Private Equity Firms Centerbridge Partners and Bridgeport Partners Acquire Computer Services Inc. for $1.6 Billion
In a significant move in the regtech industry, private equity firms Centerbridge Partners and Bridgeport Partners have announced plans to acquire publicly traded Computer Services, Inc. (CSI) for $1.6 billion in an all-cash deal. The acquisition is expected to enable CSI to execute its strategic plans to expand and diversify its various product offerings.
A Leader in Innovation and Customer Service
CSI, a provider of payments processing and regulatory compliance services, has been around since 1965. Throughout the years, the company has established itself as a leader in innovation and customer service. With nearly 2,600 customers and over 1,100 employees worldwide, CSI claims to have a strong presence in the market.
The Deal
The deal, which is expected to be approved by shareholders and regulators in Q4 2022, will net CSI shareholders a 53% premium over CSI’s closing stock price as of August 19. The acquisition will result in CSI’s stock no longer being listed on the public market.
A Strategic Partnership
CSI CEO David Culbertson said that the transaction will enable the company to execute its strategic plans to expand and diversify its various product offerings. "For more than 57 years, CSI has been known as a leader in innovation and customer service," Culbertson said in a press release. "Centerbridge and Bridgeport have deep experience in technology and financial services as owners and operators."
Bridgeport founder Frank Martire said that he is pleased to partner with Centerbridge on the acquisition of CSI. "CSI has always been known for its commitment to its customers, employees, partners, and the communities it serves," Martire said. "Centerbridge and Bridgeport are committed to maintaining this reputation while we work together with David and his team to implement the company’s growth initiatives."
The Regtech Industry
The regtech industry continues to attract significant investment from venture capital firms. In Q1 2022, venture capital firms invested $28.8 billion into fintech and crypto companies, accounting for one-fifth of all investments made during that period. Last year, VCs pumped $132.5 billion into the sector, more than double the amount invested in 2020.
However, there are signs of turbulence on the horizon. A recent CB Insights report found that fintech and regtech investments declined year-over-year in Q2 2022, reflecting fears of a recession, rising interest rates, and inflation.
The Impact
The acquisition of CSI by Centerbridge Partners and Bridgeport Partners is expected to have a significant impact on the regtech industry. With its strong presence in the market and commitment to innovation and customer service, CSI is well-positioned to continue leading the way in regulatory compliance services.
As the regtech industry continues to evolve, it will be interesting to see how this acquisition plays out. Will CSI’s new owners be able to maintain its commitment to innovation and customer service? Only time will tell.
Related Articles
- Nord Security founders launch Nexos.ai to help enterprises take AI projects from pilot to production
- Despite VCs investing $75B in Q4, it’s still hard for startups to raise money, data proves
- Failed fintech startup Bench racked up over $65 million in debt, documents reveal
About the Authors
Kyle Wiggers is a senior reporter at TechCrunch with a special interest in artificial intelligence. His articles focus on the latest news and trends in the AI industry.
Paul Sawers is a technology journalist who covers startups, venture capital, and innovation. He has written extensively on the impact of technology on business and society.
Stay Connected
Follow us on social media to stay up-to-date with the latest news and insights from the world of regtech and beyond:
- Twitter: @TechCrunch
- LinkedIn: TechCrunch
- Facebook: @TechCrunch
Subscribe to Our Newsletters
Get the best of TechCrunch’s coverage delivered straight to your inbox. Choose from our range of newsletters, including:
- TechCrunch Daily News: Get the latest news and insights from the world of tech.
- TechCrunch AI: Stay up-to-date with the latest developments in artificial intelligence.
- Startups Weekly: Discover new startups and trends in the startup ecosystem.
Subscribe now and stay ahead of the curve!
