S1 Corporation has rejected a takeover move from payment systems provider ACI Worldwide. At the same time, the company's Board of Directors has affirmed its commitment to S1's pending merger with Fundtech.

ACI Worldwide last week made a move to acquire the company with a $540 million cash and stock offering. “Our proposal would provide S1 shareholders with a substantial premium and immediate cash value for their investment in S1, as well as the opportunity to participate in the significant upside potential of a combined ACI-S1,” said Philip G. Heasley, president and CEO at ACI. “We believe that ACI would further enhance its current position as a global leader in the enterprise payments software industry as a larger, more diversified company that is strongly positioned in a wide range of markets and supported by a broader base of revenues and earnings.”

In response, John W. Spiegel, chairman of the Board of Directors of S1, has commented: "The Board gave careful consideration to each of the proposed terms and conditions of ACI's proposal. In the end, the Board determined that ACI's proposal is not in the best interests of S1 and its stockholders. We believe that continuing to execute on our long-term business plan, which includes the business combination with Fundtech, will best help us maximise stockholder value and achieve our strategic goals."

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