Authorize.Net Holdings, a provider of IP based payment solutions, announced that its stockholders voted to approve the acquisition of Authorize.Net Holdings by CyberSource Corporation (CyberSource), a provider of electronic payment and risk management solutions. 83.9% of the total share holders voted in favor of the acquisition. Authorize.Net stockholders will receive 1.1611 shares of CyberSource for every share of Authorize.Net. Additionally, stockholders will receive a pro-rata share of $125m in the form of a cash payment. The acquisition was also approved by the stockholders of CyberSource on October 23, 2007.
In June, 2007, CyberSource Corporation and Authorize.Net, signed a definitive agreement to acquire Authorize.Net in a stock and cash transaction valued at approximately $565 million.
This acquisition will enable CyberSource to provide payment solutions to all segments of the e-commerce industry. While CyberSource, with approximately 20,000 customers, has focused on managing payments for mid-sized and enterprise customers, Authorize.Net focuses on small businesses, with over 175,000 customers. Jointly, the companies processed approximately 1.1 billion transactions in 2006, representing $65bn in e-commerce value.
This is an investment in growth and scale, said Bill McKiernan, Chairman and Chief Executive Officer at CyberSource. Each company has a strong brand, processing platform and team. This combination helps secure our leadership position, and gives us more resources to bring innovative payment solutions to our customers and partners. We believe this combination creates a unique global platform to allow us to better serve the industry and positions CyberSource to support new business opportunities as more payment types migrate to web-based platforms.
Bill McKiernan will remain Chairman and Chief Executive Officer of the combined entity. Scott Cruickshank will remain president and chief operating officer of CyberSource and Roy Banks will remain president of Authorize.Net. Robert Donahue, currently a member of the board of directors of Authorize.Net, will join the board of directors of CyberSource.
