BISYS Group Inc. has agreed to sell its information services division to Open Solutions Inc. for $470 million.[@@]
BISYS, New York, is selling the unit, which sells technology services and business services to banks, so that it can expand its investment services and insurance services businesses, according to Russell Fradin, the company’s president.
Open Solutions, Glastonbury, Conn., a company that sells computer services to banks and credit unions, has a right to audit the information services group before it closes on the deal, BISYS says.
BISYS has had to delay the filing of audited financial statements with the U.S. Securities and Exchange Commission because of problems with bookkeeping.
BISYS hopes to complete the deal by Dec. 31.
BISYS expects to get $300 million in net proceeds from the deal and to use the cash to retire existing term loan and convertible notes.