ACI Overview

Overview

This long-standing US-based player has an extremely broad suite of payment applications, across both wholesale and retail. It has been highly acquisitive, so a fair number of the applications stem from this route. This meant ACI was left with a mix of offerings with different backgrounds, technologies, strengths and weaknesses. Of late, it has sought to rationalise this, selecting
a flagship application per sector and putting in place an integration strategy.

That strategy is relatively clear but there are challenges, particularly in the migration of customers from old applications to new. A particular legacy base is on one of the industry's traditional payment engines, Base24, with ACI seeking to move this to the much newer Base24-eps. Some customers have gone this way (and a phased migration is feasible) but some have headed elsewhere. The wholesale payment engine is MTS.

In early October 2011, after an episode with a few twists and turns, it was announced that ACI was to acquire S1 Corporation.

Categories: 

• Retail payments processing
• Wholesale payments processing
• Card management (credit, debit, smartcard, prepaid), 
• Acquirer services
• Retailer services 
• E-banking
• Fraud management
• AML
• Exceptions management 

Summary History

1975 – Applied Communications Inc set up in Omaha to develop software for Tandem hardware, largely on a bespoke basis.

1982 – Launch of first  product, Base24.

1993 November – ACI Worldwide formed in Delaware, primarily from Applied Communications Inc, which was acquired from Tandem Computers.

1995 – Listed on Nasdaq, initially as Transaction Systems Architects (TSA).

1998 – Acquires wholesale payments systems supplier, Intranet Inc.

2001 – Intranet brand revived for TSA's wholesale payments business.

2005 – Defines long-term strategy. Local development was one theme.

2005 July – Acquires S2 Systems, largely centred on the OpeN/2 payment platform, with Base24 now positioned for this user base.

2006 – Buys Germany-based Electronic Payment Systems AG.

2006 October – Acquires corporate cash management systems specialist, P&H Solutions, for $150 million. TSA announces it is to rebrand as ACI Worldwide. Three primary operating functions are defined: ACI Global Solutions for R&D; ACI Distribution Channels (Americas, based in New York, EMEA based in Watford, UK, and Asia Pacific, based in Singapore); and Software as a Service (with P&H Solutions' business to be a cornerstone of this and to be headed by P&H CEO, Ralph Danelmaier). Base24-eps is recognised as ACI's strategic platform for all new 

development and as the core for convergence of other ACI products. 

'Classic products' to be sold on a tactical basis, depending on timeframes or platform preferences, are defined as Base24, OpeN/2, ON/2, AS/X and the ACI Retail Commerce Server, among others. The bases of each to be encouraged to move to new offerings (identified at this time by all coming under the Base24 brand). In fact, the situation with the Retail Commerce Server electronic payment and authorisation product for retailers becomes unclear, as ACI continues to sell it (five new customers were claimed in the 15 months to January 2008).

2007 January – Filings delayed for the 2006 accounts and TSA/ACI threatened with delisting by Nasdaq. Other notifications received in May and December 2007.

2007 July  – Rebrand occurs.

2007 December – Global alliance announced with IBM, availability of applications on zOS mainframe platform is part of this.

2008 January – Partnership with IBM is extended, giving IBM warrants to acquire up to eight per cent of ACI.

2008 March – ACI signs to outsource all of its internal IT to IBM.

2011 August – A bid for S1 Corporation is rejected.

2011 October – A renewed bid for S1 is accepted.