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Technology Stocks : CheckFree (CKFR)

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To: TLindt who wrote (729)	10/29/1997 3:59:00 PM
From: Charlie Smith	Read Replies (1) of 8545

T: As they say in the Hertz ad, not exactly. No cash changes hands up front. As consideration for signing the deal, Integrion gets the right to buy 3 million shares of CKFR at $20.94 within 60 days. This has a current value of about $24 million (up from $15 million this morning). Integrion also gets warrants for another 7 million shares exercisable between now and Jan 1, 2002 ON THE CONDITION that the growth targets mentioned in the release are met on schedule. Dilution is really an unknown at this point because incremental profitablity from the Integrion block of business can only be estimated (I'm working on it). We hope Pete Kite et al structured the deal to be accretive after some time period (my guess is beginning July 1 1998). Given the rapid recent growth of Integrion's business, particulary thru Visa Interactive mentioned in the conference call, this may be a reasonable assumption. Regards

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