Fundtech Acquires CheckFree's Cash Management and Wire Transfer Software Business Units
Monday, April 20, 1998 05:22 PM
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JERSEY CITY, N.J., April 20 /PRNewswire/ -- Fundtech Ltd. (Nasdaq: FNDTF) today announced the acquisition of CheckFree Corporation's (Nasdaq: CKFR) cash management and wire transfer businesses for $18.25 million. This all-cash acquisition represents a strategic move for Fundtech, further positioning the Company as a key provider of client/server software products to the financial services and corporate treasury management markets. The acquired businesses accounted for approximately $9 million in revenue for CheckFree during its fiscal year ended June 30, 1997.
The acquisition of CheckFree's cash management and wire transfer product offerings and its over-65 customers, solidifies Fundtech's position as a leading provider of cash management and wire transfer software.
The cash management products connect corporate cash managers to their banks allowing them to remotely conduct cash management activities away from the bank.
Fundtech and CheckFree originally partnered in early 1997 to deliver Fundtech's wire transfer software to CheckFree's customers under the brand name WireNext(TM). As a result of this acquisition, Fundtech will take over the WireNext customer base, software code, salesforce and support personnel relating to the wire transfer software solution. Fundtech and CheckFree will work towards an arrangement for references of future customers.
Reuven Ben-Menachem, Fundtech's Chief Executive Officer, commented, "This acquisition is key to Fundtech's strategy of focusing on the payment cycle, where our software products electronically connect parties' transferring funds to banks and treasury managers to banks. Fundtech is fully committed to carrying the existing products forward while building the next generation of Internet-based cash management products."
"The acquisition of CheckFree's customer base, combined with Fundtech's Internet banking offering, positions Fundtech as a leader in the growing market of Internet banking for businesses and will allow us to provide secure, integrated wire transfer and cash management product offerings over the Internet," said Michael Carus, Senior Vice President & Chief Financial Officer of Fundtech.
"CheckFree has enjoyed a strong relationship with Fundtech since we began working together in March 1997," said Sean Feeney, President of CheckFree Software. "We are confident that Fundtech will continue to provide the highest level of service to the cash management and wire transfer customers while allowing us to concentrate our resources on processing services for electronic banking, billing and presentment, brokerage and business solutions."
Founded in 1981, CheckFree ( checkfree.com ) is the leading provider of electronic commerce services, software and related products for 2.2 million consumers, 1,000 businesses and 850 financial institutions. CheckFree designs, develops and markets services that enable its customers to make electronic payments and collections, automate paper-based recurring financial transactions and conduct secure transactions on the Internet.
Fundtech Ltd. designs, develops, markets and supports a suite of mission-critical, client/server software products which enable financial institutions and large business enterprises to electronically process payments, transfer funds and manage their cash positions. The Company's products are among the most technologically advanced and cost-effective electronic payments, funds transfer and cash management solutions. The Company's proprietary innovative software architecture based on the Windows NT operating system, provides modular, scaleable, and secure solutions that, during the past three years, have been sold to more than 100 financial institutions including Fidelity Investments, Swedbank, Visa International and Washington Mutual. Additional information on Fundtech can be found by visiting their website at fundtech.com.
Certain statements contained herein, including statements regarding the development of the Company's services, markets and future demand for the Company's services and other statements regarding matters that are not historical facts, are forward-looking statements (as defined in the Private Securities Litigation Reform Act of 1995). Such forward-looking statements include risks and uncertainties; consequently, actual results may differ materially from those expressed or implied thereby. Factors that could cause actual results to differ materially include, but are not limited to, variability of quarterly operating results, dependence on key personnel, ability to effectively manage growth, risks associated with rapid technological advances, risks associated with possible acquisitions, any integration of those acquisitions into the company's present business, risks associated with the Company's strategic partnerships, various project associated risks, including Internet projects, substantial competition, risks associated with intellectual property rights, risks associated with international operations and other risk factors listed from time to time in the Company's filings and reports.
SOURCE Fundtech Ltd.
CONTACT: Michael Carus, Senior Vice President & CFO of Fundtech Ltd., 201-946-1100; Connie Bienfait, or Jonathan Rebell, or Press: Richard Dukas, or Ann Travers, of Morgen-Walke Associates, 212-850-5600, for Fundtech; or Laurinda Wilson, Vice President, Corporate Communications of CheckFree Corporation, 770-840-1608
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