Banking technology provider Datawest Solutions Inc. has agreed be acquired by U.S.-based Open Solutions Inc.

The transaction, announced today, has a value of about $49.6 million. Under the acquisition agreement, Open Solutions will offer $1.23 a share for 29.8 million Datawest common shares and $2.60 for each of five million preferred shares.

The deal is expected to close in November.

Datawest sells banking and payment technology software and systems and is the principal provider of outsourced banking technology to Canadian credit unions. The company’s payment solutions group manages Canada’s largest bank machine network.

“We believe this is a very favourable transaction for our shareholders and an excellent opportunity for our customers and employees and we are pleased to have reached this agreement with Open Solutions,” said Darryl Yea, chairman and chief executive of Datawest, in a news release.

“Open Solutions is highly recognized in the financial services arena and has demonstrated a focused commitment to meeting the technological and service needs of the industry and their clients.”

Open Solutions will operate Datawest through a wholly owned Canadian subsidiary, and Datawest will continue to be based in Vancouver and operate its payment data centre in Oakville, Ont., just west of Toronto.