ACI Worldwide helps money go mobile. The company develops e-payment and electronic funds transfer (EFT) software for companies around the world. Customers use its software to process transactions involving ATMs, credit and debit cards, online banking and payment processing, point-of-sale terminals, smart cards, and wire transfers. ACI also makes network integration software, and it offers services such as design, implementation, and facilities management. The company serves the financial services and retail industries, with more than 750 customers in some 80 countries.
Sales and Marketing
The company distributes products primarily through its own sales force, but also utilizes third-party distributors in certain regions (primarily Asia and Latin America). Among those distributors are DataOne (Thailand), Optimisa (Chile), and Syscom Computer (China).
ACI generates more than half its sales from the Americas, with the EMEA and Asia-Pacific regions contributing 35% and more than 10%, respectively. The company saw revenues rise across all regions in 2011, with the Asia-Pacific region showing the strongest growth at nearly 20%.
ACI has reported strong revenue growth since 2009 when sales fell amid the worst of the economic recession. The company's 2011 revenue hit $465 million, which is up 11% from 2010, as it saw double-digit increases in software license and maintenance fees and smaller growth in service and software hosting fees.
Net income was also up in 2011, jumping nearly 70% to $46 million on the increase in revenue, as well as lower growth in maintenance fees, general and administrative costs, and other expenses. ACI also saw lower income tax expenses in 2011.
Mergers and Acquisitions
ACI Worldwide has worked to strengthen its international presence and add new technology to its repertoire in part through acquisitions. In 2012 it bought rival S1 Corporation for about $540 million in cash and stock. The two companies had very similar product lines and customers, and ACI Worldwide believed the merger would create significant cost savings and cross-selling opportunities, as well as boost its profile among community financial and branch banking institutions. S1 was integrated into ACI's other operations. The deal added a consumer online banking division, and a significant retail presence outside North America.
Additionally that year ACI acquired payments software developer Distra to extend the feature set of its products to address mobile usage, social channels and payment services hubs.
In 2011 the company bought Dallas-based ISD Corporation to add functionality to its products for retailers. ISD's applications were designed to consolidate, manage, and route electronic transactions for authorization and settlement processing. ACI Worldwide integrated the acquired technology into its On-Demand hosted service and its Retail Commerce Server product to add flexibility for its customers. – less