BISYS, a provider of outsourcing solutions for the financial services sector, has entered into a definitive agreement to sell its Information Services group, which includes its Banking Solutions, Document Solutions and Corporate Financial Solutions businesses, to Open Solutions Inc., a provider of integrated, enterprise-wide data processing technologies for banks and credit unions.
The transaction is expected to close in BISYS’ second fiscal quarter ending December 31, 2005. Total cash consideration in the transaction will be approximately $470 million. Net proceeds after closing costs and the payment of taxes are expected to be approximately $300 million. BISYS anticipates using the net proceeds from the sale and cash on hand for the retirement of its existing term loan and convertible notes.