Davis and Henderson Corp., the technology provider for North American banks, agreed to buy Harland Financial Solutions for $1.2 billion in cash.

The purchase will give Davis and Henderson 5,400 additional U.S. banking customers and contribute “high, single-digit” earnings growth in 2014, the company said in a press release Tuesday. Combined revenue will be about C$1.1 billion ($1.07 billion), Davis and Henderson said.

“For our shareholders, Harland provides the strategic platform to accelerate the growth and diversification” of revenue and cash flow, Brian Kyle, chief financial officer of Davis and Henderson, said in the release.

The Toronto-based company will finance the purchase in part by raising C$600 million through the sale of subscription receipts and unsecured debentures through banks including Bank of Nova Scotia, Royal Bank of Canada and Canadian Imperial Bank of Commerce.

Harland, based in Lake Mary, Florida, says it’s the fourth-largest core banking technology company in the U.S., with 1,350 employees. Its products include mortage and loan origination systems.

Davis and Henderson will focus on integrating Harland and may make smaller “bolt-on” acquisitions in the U.S. “down the line,” Chief Executive Officer Gerrard Schmid said in a conference call.

The transaction is slated to close about Aug. 19. Raymond James advised Davis and Henderson.

Trading in Davis and Henderson shares was halted on the Toronto Stock Exchange after the stock rose 0.6 percent to C$22.98.