RESTON, Va.--(BUSINESS WIRE)--Jan. 12, 2001--InteliData
Technologies Corp. (Nasdaq:INTD.O) announced today that it has acquired
Home Account Holdings, Inc. and its operating subsidiary, Home Account
Network, Inc. ("Home Account"), in exchange for 6,900,000 shares of
InteliData stock which would be valued at $36.225 million based on
Thursday's closing price of $5.25 per share. The transaction will be
treated as a purchase for accounting purposes.
Home Account provides a suite of industry leading UNIX-based
Internet banking and Electronic Bill Presentment and Payment (EBPP)
products and services in an Application Services Provider (ASP)
environment. With this acquisition, InteliData adds major clients such
as Bank of America, Citigroup, First Union, United Missouri Bank,
Metris, Scudder Kemper, and Alliance Capital. The combined firm has a
strong base of leading financial services clients representing 10 of
the top 50 banks, four of the top 10 brokerage firms, and several of
the industry's leading credit card issuers. InteliData's potential
user base now exceeds 100 million customers, with more than one
million active users today.
This acquisition expands InteliData's investor base adding First
Data Corp., Marsh & McLennan Capital, Oak Investment Partners, New
Enterprise Associates, and Mobius Management Systems, Inc. as
shareholders in InteliData.
"This transaction significantly broadens our product suite and
technology competency and increases our intellectual capital with a
team of professionals who share our passion and values," said Al
Dominick, President and CEO of InteliData. "Furthermore, by adding
Home Account's Statement Rendering, Bill Presentment and Bill Payment
application with its real-time interface to First Data Corp.'s credit
card processing system, InteliData becomes a significant Biller
Services Provider (BSP), and will realize immediate revenue in the
credit card processing channel. In addition, these customers will be
able to leverage our expertise in payment system switches, like
Spectrum, for presenting their statements and bills."
Speaking about the acquisition, Scott A. Smith, Jr., Equity
Research Analyst at Lehman Brothers, said, "In 2000, financial
institutions sought to build Internet banking products following the
apparent success of models like Wingspanbank.com. Unfortunately, some
of these models stumbled, leaving many institutions wondering what
approach would best serve their retail customers. This year we expect
to see a second wave evolution in Internet banking and EBPP, creating
new opportunities for companies like InteliData. To be effective,
companies will need to develop deep capabilities and fully integrated
products. The combination of InteliData and Home Account Network
should be well positioned to win new business."
Former Home Account President and CEO, Charles A. White, will join
InteliData as Vice Chairman, overseeing the Biller Services Provider
channel and assuming a corporate development role, identifying
potential new partners and customers. According to White, "This is a
win-win transaction. By combining our complementary products and
customers, InteliData will gain a strong suite of products and
services, a leading presence in a number of developing market
segments, and economies of scale. Home Account's clients will benefit
from the combined company's expanded product offerings as well as
InteliData's strong balance sheet."
Dominick added, "During the past year, InteliData has invested in
the development of a next-generation, fully-integrated Internet
banking, Bill Presentment and Bill Payment system, which is platform
independent and is based on industry standard Java 2 Enterprise
Edition (J2EE) architecture. This solution ensures that our customers
will continue to receive industrial-strength performance and
reliability with unsurpassed flexibility as their base of users
increases."
Commenting on the acquisition, InteliData's Founder and Chairman,
Bill Gorog, said, "This industry is reaching a stage where
consolidation will be the order of the day. As a result of this
environment, we were presented with a unique opportunity to leverage
our market capitalization and the technology investments we've made in
the past year. This is a rare case where not only do we see an
excellent strategic fit, but we also believe that the economics are
equally compelling. InteliData's recurring revenue base is enhanced by
the addition of Home Account's ASP-based transaction revenues, making
this acquisition substantially accretive."
The company's headquarters will continue to be in Reston, Virginia
and it will maintain three development centers of expertise.
InteliData's facility in Charleston, South Carolina will focus on Open
Financial eXchange (OFX) and Interactive Financial eXchange (IFX)
development; the Omaha, Nebraska site will be devoted to Biller
Service Provider (BSP) products and services; and the Reston, Virginia
facility will concentrate on Consumer Service Provider (CSP) and
Internet banking products and services. A fourth facility in Toledo,
Ohio will manage all Application Services Provider (ASP) operations
and provide technical support to all customers.
Lehman Brothers, Inc. served as InteliData's financial advisor in
this transaction.
About InteliData
InteliData provides Internet banking and Electronic Bill Payment
and Presentment (EBPP) technology and services to banks, credit
unions, and financial institution processors. InteliData's EBPP
products offer banks and other financial institutions an end-to-end
solution for creating e-bills for billers, distributing e-bills and
e-payments through multiple delivery channels, delivering e-bills to
consumers, and enabling payment of bills through multiple payment
processors utilizing OFX and IFX messaging standards. InteliData's
Internet banking products provide large financial institutions
throughout the U.S. with unsurpassed scalability, flexibility and
security in supplying real-time, Internet based banking services to
their customers. For more information about InteliData, visit the
company's Web site at intelidata.com
"Safe Harbor" statement under the Private Securities Litigation Reform
Act of 1995: This release contains forward looking statements that are
subject to risks and uncertainties, including, but not limited to, the
ability of the Company to successfully assimilate and retain the
employees of Home Account and integrate the products of Home Account
with those of the Company, the risks of not realizing the cost savings
anticipated by eliminating personnel and facilities, the Company's
ability to retain customers and subscribers as a result of the
acquisition of Home Account, the risk of anticipated revenues
following the acquisition of Home Account not meeting the Company's
expectations, the ability of the Company to complete product
implementations in required time frames and the Company's ability to
increase its recurring revenues and profits through its ASP business
model, the impact of competitive products, pricing pressure, product
demand and market acceptance risks, pace of consumer acceptance of
home banking and reliance on the Company's bank clients to increase
usage of Internet banking by their customers, mergers and
acquisitions, risk of integration of the Company's technology by large
software companies, the ability of financial institution customers to
implement applications in the anticipated time frames or with the
anticipated features, functionality or benefits, reliance on key
strategic alliances and newly emerging technologies, the ability of
the Company to leverage its Spectrum relationship into new business
opportunities in the EBPP market, the on-going viability of the
mainframe marketplace and demand for traditional mainframe products,
the ability to attract and retain key employees, the availability of
cash for long-term growth, product obsolescence, ability to reduce
product costs, fluctuations in operating results, ability to continue
funding operating losses, delays in development of highly complex
products and other risks detailed from time to time in InteliData
filings with the Securities and Exchange Commission. These risks could
cause the Company's actual results for 2001 and beyond to differ
materially from those expressed in any forward looking statements made
by, or on behalf of, InteliData. InteliData is not under any
obligation (and expressly disclaims an obligation to) update or alter
its forward-looking statements, whether as a result of new information
or otherwise.
INTELIDATA INVESTOR CALL TODAY
InteliData Technologies Corporation will host an investment
community conference call at 11:00 AM (EST) today, January 12, 2001,
to review company status and discuss this announcement. The call will
be hosted by Al Dominick, President and CEO, Bill Gorog, Chairman, and
Steve Mullins, Chief Financial Officer.
Conference Call Details:
-- Time: 11:00 AM (EST)
-- Call-in Number: (888) 937-2887
-- The call will be replayed and available on January 12, 13, 14,
and 15 by calling (800) 633-8284 and entering #17630953.
International callers should call (858) 812-6440 and enter the
same number.
--30--kb/ny*
CONTACT: InteliData
Steve Mullins, 703/259-3000
CFO
smullins@intelidata.com
or
Magnet Communications
for InteliData
Gail Richardson, 212/367-6936
grichardson@magnetcom.com
KEYWORD: VIRGINIA
INDUSTRY KEYWORD: BANKING E-COMMERCE INTERNET CONFERENCE CALLS
MERGERS/ACQ
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