TORONTO, Sept. 13 /CNW/ - Leading Internet infrastructure software
developer, 724 Solutions Inc. (NASDAQ: SVNX; TSE: SVN), today announced it
has acquired Chicago-based Spyonit.com, Inc., a leading developer of Web-
based monitoring and notification technology. Spyonit.com's alert software
adds to 724 Solutions' vision of offering a comprehensive, customized end-user
experience for financial institutions' customers.
724 Solutions will acquire all of the outstanding shares of Spyonit.com
in exchange for U.S. $2 million cash and 1,041,616 of its common shares.
Based on the closing price on the Nasdaq National Market on September 12,
2000, and including contingent costs associated with key employee retention,
the transaction will have a value of approximately U.S. $53.4 million.
Spyonit.com was founded in October 1999 to make it easy for users to
stay on top of the things they care about -- even while they're away from
their computer. The company's infrastructure software monitors the Internet
and other content sources for items of interest such as stock prices, product
sales, or auction bids. When appropriate content is detected, the Spyonit.com
system delivers smart notifications to the user through a variety of Internet-
accessing devices, such as cell phones and personal digital assistants.
"Spyonit.com allows us to broaden the range of alert services our
Financial Services Platform supports, complements our LiveClips aggregation
solution, and adds a compelling standalone offering to our product portfolio,"
said Greg Wolfond, chief executive officer, 724 Solutions. "Financial
institutions see this technology as critical as it provides an excellent
entry point for mobile transactions as well being a 'sticky' service that
keeps customers coming back again and again."
Spyonit.com's alert technology and management team will provide the
platform and expertise for what will become 724 Solutions' "Tell Me When"
offering -- presenting consumers with personalized alerts on informational
events when they occur, and eventually enabling them to complete transactions
based on that information. Spyonit.com's technology will enable 724 Solutions'
Financial Services Platform (FSP) to support e-commerce alerts from merchant
Web sites and account alerts from financial institution data.
In addition, the Spyonit.com business unit will independently target
other market segments including media/news and entertainment, healthcare,
portals, search engines and other enterprise categories.
Dick Costolo, chief executive officer and president of Spyonit.com said,
"724 Solutions offers us outstanding technology, talent, culture, and
strategic vision that will enable us to accelerate our market penetration."
According to Costolo, the proliferation of connected Internet devices is
changing the way people receive and interact with information. Spyonit.com is
poised to lead in the development of alerts infrastructure software and tools,
changing the very nature of information exchange. In a recent survey of the
U.S. market, Forrester Research reported that over 60 percent of people who
use Internet-enabled devices want notifications on discounts and promotions.
Additionally, International Data Corporation reports that there are almost 70
million U.S. Internet-enabled devices capable of receiving alerts.
Currently, Spyonit.com (www.Spyonit.com) is working with Morningstar and
other news and financial content providers to deliver personalized
notifications to Internet devices. Spyonit.com was recognized in the "10
Internet Essentials" category under the "50 Most Incredibly Useful Sites"
list in the July 2000 issue of Yahoo! Internet Life Magazine.
About 724 Solutions Inc.
724 Solutions provides an Internet infrastructure solution to financial
institutions that enables them to offer personalized and secure mobile
banking, investment, and e-commerce services across a wide range of Internet-
enabled wireless and consumer electronic devices. The company provides end-to-
end customer support through its global application hosting and contact center
services. 724 Solutions' customers are world-class financial institutions
whose combined customer bases total 165 million. 724 Solutions' common shares
are listed on the NASDAQ National Market (SVNX) and the Toronto Stock Exchange
(SVN). Headquartered in Toronto, Canada, the company has offices in London,
Paris, San Francisco, Santa Clara, Sydney, and Tokyo. For additional
information visit www.724.com.
This press release contains statements of a forward-looking nature.
These statements are made under the "safe harbor" provisions of
the U.S. Private Securities Litigation Reform Act of 1995. You can
identify these forward-looking statements by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates" and similar expressions. The accuracy of
these statements may be impacted by a number of business risks and
uncertainties that could cause actual results to differ materially
from those projected or anticipated, including risks related to: the
risk that technologies for the delivery of financial or e-commerce
services over the Internet and wireless networks will not be
developed or be attractive to consumers as anticipated; the risk
that 724 Solutions will not successfully deploy or operate services
(including Spyonit.com's alert notification services) based upon
the 724 Solutions Financial Services Platform; the risk that
Spyonit.com's services will not be able to be profitably independently
marketed and other risks outlined in 724 Solutions' SEC filings, and
filings with Canadian Securities Administrators, including but not
limited to 724 Solutions' registration statement on Form F-1,
prospectuses, material change reports, Annual Information Form, Form
20-F, Management Information Circular, or filings on Form 6-K. 724
Solutions and Spyonit.com do not undertake any obligation to update
this forward-looking information, except as required under applicable
law. |
