S1 To Acquire Fundtech

S1 Corp SONE agreed to acquire Fundtech Ltd FNDT in a stock deal valued at $20.51 per share or about $700 million. S1 will issue 2.72 shares for each share of Fundtech, according to the merger agreement. S1 shareholders will own 55% of the new company and the rest by Fundtech shareholders. The deal is likely to close in the fourth quarter and is expected to add to S1's 2012 adjusted earnings. SONE shares fell 1.18% to close at $7.54 on Friday, while FNDT shares dropped 0.71% to close at $19.58 on Friday.