Payments and electronic banking solutions providers S1 Corp. and Fundtech Ltd. announced that they will merge via a stock-for-stock transaction. Fundtech investors will receive 2.72 shares of S1 common stock for each share of Fundtech. The companies say the merger is valued at about $700 million.

Atlanta-based S1, which has 3,000 customers for its payments and banking solutions, had $209 million in revenue in 2010. Jersey City, N.J.-based Fundtech, which provides payments systems and cash management systems and operates a SWIFT service bureau, had $142 million of 2010 revenue.

While both companies provide online banking services and mobile solutions to business and large corporations, S1 and Fundtech have for the most part complementary product sets serving different size clients, and their tie-up could result in a global player offering front-to-back solutions, writes Jacob Jegher, senior banking analyst for consultancy Celent, in his blog.