Payment systems provider ACI Worldwide (ACIW 5.49%) announced Monday an all-cash deal to purchase electronic bill payment service provider Official Payments Holdings for $8.35 per share. The transaction values the EBPP (electronic bill presentment and payment) company at an enterprise value of approximately $109 million.

With more than 3,000 customers representing access to more than 100 million end users, Official Payments processes approximately 20 million payments every year, representing over $9 billion in volume.

Saying the acquisition supports ACI's strategy of providing a complete set of end-to-end payment services, President and CEO Philip Heasley said in a statement, "The acquisition will further extend ACI's leadership in the fast-growing EBPP space, expanding our portfolio across key sectors including federal, state and local governments, municipal utilities, higher education institutions, and charitable giving organizations."

ACI will commence a cash tender offer to purchase all outstanding shares of Official Payments on Oct. 4, and in connection with the deal, entered into a separate agreement with Parthenon Capital Partners, which owns 10.8% of Official Payments' stock, in which the shareholder agreed to tender its shares during the offer period. The tender offer will expire at 12:00 midnight New York City time, 20 business days after the tender is commenced

ACI Worldwide says the transaction is expected to be accretive to full-year earnings in 2014.