Monday, CyberSource Corp. (CYBS) said it agreed to acquire Authorize.Net Holdings, Inc. (ANET) in a stock and cash transaction valued at about $565 million, as of the close of the NASDAQ Global Market System on June 15, 2007.According to CyberSource, the deal brings together two leaders in web-based payment, while positioning CyberSource to further capitalize on the growing web-based payment opportunity. Both companies enable e-commerce businesses to accept online payments for goods and services. The acquisition will enable CyberSource to provide leading payment solutions to all segments of the e-commerce industry.Under the agreement, CyberSource will issue 1.1611 shares of its common stock for each share of Authorize.Net. In addition, shareholders will receive a pro-rata share of approximately $125 million in the form of a cash payment.CyberSource chairman and CEO, Bill McKiernan, said, "This is an investment in growth and scale. 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."Commenting on the deal, Robert Donahue, Authorize.Net Holdings CEO, stated, CyberSource an excellent position to leverage the potential of the combined businesses to further build on the successes of each company. They see the full potential in the Authorize.Net business, and they share our commitment to the continued growth of our customers and partners.CyberSource chairman and CEO, Bill McKiernan, will head the combined entity. Once the transaction is closed, Authorize.Net chief Robert Donahue will join the board of CyberSource. In conjunction with the anticipated transaction, Scott Cruickshank, president and COO of CyberSource, has agreed to resign from the board.Subject to customary closing conditions, including shareholder approvals and regulatory requirements, the transaction is expected to close in late September or early October 2007.Meanwhile, the deal is expected to be accretive in the fourth quarter of 2007 on a non-GAAP basis.In connection with this deal, Goldman Sachs & Co. served as financial advisor to CyberSource, while Jefferies Broadview, a division of Jefferies & Co., served as financial advisor to Authorize.Net.CyberSource, with approximately 20,000 customers, has traditionally focused on managing payments for mid-sized and enterprise customers.Authorize.Net, with over 175,000 customers, has specialized in small businesses. The company was incorporated in 1989 as Credit Technologies, Inc. and changed its name to Lightbridge, Inc. in 1994. Later, it changed its name to Authorize.Net Holdings, Inc. in April 2007 and is headquartered in Marlborough, Massachusetts.Collectively, CyberSource and Authorize.Net processed approximately 1.1 billion transactions in 2006, representing $65 billion of e-commerce.Stock QuoteCyberSource lost 85 cents or 6.59% in the pre-market hours at $12.05 after closing Friday's regular trading at $12.90. On the other hand, Authorize.Net shares are rallying in the pre-market by $2.22 or 13.27% at $18.95, a new 52-week high for the stock. The stock closed Friday's regular trading session at $16.73. For the past one year, shares of Authorize.Net have been trading in the range of $10.45 - $18.17.
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December 19, 2025 15:10 ET U.S. inflation data and interest rate decisions by major central banks were the highlights of this busy week for economics news flow. Employment data and survey results on the housing markets also gained attention in the U.S. In Europe, the European Central Bank and Bank of England announced their policy decisions and macroeconomic projections.