In an attempt to find information on FNDTF's CEO, Reuven ben-Menachem, I came across a few articles. Even though I found nothing on him, I did find a few references to the Chairman, Boaz Misholi. Many of the following are from Israeli's Business Arena: globes.co.il
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Thursday , Mar 25, 1999 Sun-Thu at 18:00 (GMT+2)
High Tech Features
Billion Dollar Company?
By Zvika Rubens
The most oustanding Israeli share on Wall Street the past week was unquestionably Fundtech, which has posted an aggregate rise of no less than 52% in the past four days of trading, and has reached just over $30 per share. Fundtech, issued on Wall Street exactly one year ago, has for months been presenting impressive receipts, but this has not managed to find expression in the share's performance, which generally remained stuck at $18-20 throughout its first year on Wall Street.
In the past few days, it has become apparent that what handsome financial results fail to do, the magic word Internet can do. Fundtech's indirect connection to the hottest sector on Wall Street is the EPAY share, the "ticker" of US company Bottomline Technologies, which is in a very similar field to Fundtech.
Bottomline, issued a month ago at $13 per share, has since completed a jump of no less than 607% (!), closing last night at a price of $92.
The connection between Bottomline and Fundtech was made by Robertson Stephens investment bank analyst Gary Kraft, who served as leading underwriter for both companies. Kraft, who sees considerable similarities between the activities of the two companies, set a target price at the end of the week of no less than $70 for the Fundtech share, and is evidently directly responsible for the steep jumps the share has posted in the past few days.
Fundtech specializes in developing software for electronic billing and teleprocessing between financial institutions, and is regarded as market leader in this field. In the past three years, more than two hundred companies have purchased Fundtech products, and competitors such as CheckFree of the US were elbowed aside, and then turned into Fundtech distributors. In fact, CheckFree is currently Fundtech's major distributor.
Today, the total electronic payments market is assessed at $1 billion.
Most of the market is composed of 3,000 financial institutions in the US, and 5,000 institutions around the globe. It is a market likely to continue growing, against the backdrop of the increasing need for automation of financial processes. This includes clearing, money transfers, electronic payments, online banking for private customers, etc. Robertson Stephems estimates that Fundtech is likely to take a market share of 35%-40% in the future.
The company closed 1998 with revenues of $23 million. Robertson Stephens estimates the company will close 1999 with revenues of over $38 million, and will continue to show high profitability.
Fundtech's major shareholder is Aura, mostly identified with Boaz Misholi, who serves as company chairman, and holds 23% of its shares. In an interview, Misholi estimated Fundtech will continue to grow, and reach a market of over $1 billion. Even after the past few days' wave of rises, Fundtech is trading at a market value of only $330 million.
Misholi also commented on the abundant speculations heard in recent days that the company will be sold, and said that he does not foresee Fundtech being sold at this stage. "If such moves exist, I am not aware of them," said Misholi. In all events, Misholi estimates that if the company is sold at some future point, it will not be to a rival high tech company, but to a financial giant.
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Tuesday , Mar 23, 1999 Sun-Thu at 18:00 (GMT+2)
Headlines
Aura Reaps Fundtech Harvest: Sells 3.5% at $9 Mln Profit
By Zvika Rubins
Aura Investments, controlled by Boaz Misholi, continues to reap the harvest of its investment in Fundtech. Today, the company reported that in the first quarter of 1999, it disposed of 380,000 Fundtech shares at an average price of $27 per share. Total consideration stood at $10 million, almost all of which translated into a capital gain of $9 million.
Last year, when Fundtech issued in the United States, Aura (which held a 24% stake) sold shares for $2 million. In the first nine months of 1998, Aura posted a capital gain of $6 million, both from the sale, and due to the reduced size of its holding following the Fundtech issue.
Following the disposal of shares at the beginning of 1999, Aura's holding in Fundtech fell to 10.6%. The market value of its holding in New York was $33 million, 65% higher than Aura's own $20 million value on the Tel Aviv Stock Exchange. Fundtech's principal shareholder is Clal Industries, with a 17% holding worth more than $50 million. Clal Industries made its investment last year, at a company value of $157 million for Fundtech, half the current value of the shares.
Aura sold off Fundtech shares after they increased in value by 50% since the beginning of the month. In the past three months, the share price has risen from $15 to more than $30. This resulted from warm recommendations by the Robertson Stephens investment bank, which assigned the share a target price of $70, preferring Fundtech over BottomLine (E-Pay), which engages in a tangential field.
Fundtech engages in e-commerce, mainly in the transfer of electronic payments, and connection between financial institutions. In the past three years, more than 200 US banks have purchased the company's products. The company entered the European market in the past year, to provide solutions for money transfer problems in the Euro era in a market characterised by a high level of automation. The company also recently penetrated South East Asian and Third World markets, where a need has arisen for clearing and non-return money transfer systems.
Fundtech is noted for accelerated growth and for cutting costs. In 1996, the company posted a $1.4 million loss on sales of $3.5 million. In 1997, the company doubled its sales, passing to a small net profit. In the past year, the company tripled its sales, posting a net profit of $5.2 million. Gary Kraft assesses that the company will double its net profit this year, and his recent review assesses the market in which the company operates at $2 billion.
Published by Israel's Business Arena March 22, 1999
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And a couple Bloomberg releases:
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U.S. Equity Preview: FirstFed, Fundtech, Jabil, UniSource
U.S. Equity Preview: FirstFed, Fundtech, Jabil, UniSource
New York, April 23 (Bloomberg) -- The following is a list of companies whose shares may move in U.S. markets Monday, April 26. U.S. Equity Preview includes news that broke after the markets closed. Friday's closing prices are included. The stock symbol is in parentheses after the company name.
Ebay Inc. (EBAY): The Internet auctioneer is expected to report earnings Monday. The company's expected to earn 2 cents a share, the average estimate of analysts surveyed by First Call Corp. Ebay rose 28 1/8 to 200 1/8.
FirstFed America Bancorp Inc. (FAB): The bank posted fiscal fourth-quarter earnings of 32 cents a share for the quarter ended March 31, beating the 30-cent average estimate of three analysts surveyed by First Call Corp. FirstFed America was unchanged at 13.
Fundtech Ltd. (FNDTF): The software maker posted first- quarter net income of 16 cents a share, beating the 14-cent average estimate of five analysts surveyed by First Call Corp. Fundtech rose 3/4 to 36 3/4.
Jabil Circuit Inc. (JBL): The maker of circuit boards will replace U.S. Filter (USF) in the Standard & Poor's MidCap 400 Index on Monday after the close of trading. Jabil fell 2 1/16 to 41 9/16. U.S. Filter rose 1/8 to 31 3/8.
PP&L Resources Inc. (PPL): The company said it expects its earnings to grow at a compound annual rate of 7.9 percent over the next three years. PP&L rose 1/4 to 27.
UniSource Energy Corp. (UNS): The provider of electricity said its first-quarter loss narrowed to 17 cents a share from 22 cents a year earlier. UniSource was unchanged at 11. Tickers: FAB FNDTF JBL UNS
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KILL BW1037, FUNDTECH AND KILL BW1371, CQN-NJ-FUNDTECH
Business Editors
KILL BW1037 (NJ-FUNDTECH), 04/23/1999
KILL BW1371 (CQN-NJ-FUNDTECH), 04/23/1999
Please KILL BW1037, (NJ-FUNDTECH) Fundtech Revenue Increases 161% To $7.9 Million -- Net Income Increases To $2.2 Million Or $0.16 Per Diluted Share, which ran on Business Wire at 7:43 ET on 04/23/1999.
Also KILL the CORRECTION, BW1371, (CQN-NJ-FUNDTECH) Fundtech Corrects Net Income in Headline; $1.8 million sted $2.2 million, which ran on Business Wire at 16:40 ET on 04/23/1999.
REPLACE with BW1372 (NJ-FUNDTECH), Fundtech Revenue Increases 161% To $7.9 Million -- Net Income Increases To $1.8 Million Or $0.16 Per Diluted Share, which ran on Business Wire at 16:42 ET on 04/23/1999. >>>>
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Thursday , May 14, 1998 Sun-Thu at 18:00 (GMT+2)
Clal Industries Buys 10.7% of Fundtech for NIS 68 Mln
By Ami Ginsburg
Clal Industries yesterday took another step in line with its new policy, whereby it invests in stock exchange listed high-tech companies even without obtaining elements of control. The company bought 4.2% of the share capital of Fundtech from investment company Primavera of the YLR group for NIS 27 million. In addition, Clal announced it had agreed on the purchase of a further 6.5% of Fundtech's shares from other concerns for NIS 41 million.
All in all, then, Clal Industries will buy 10.7% of the shares in Fundtech for NIS 68 million (some $18.5 million). The purchases reflect a market value of $173 million for Fundtech, 20% below the company's market value ($216 million).
In contrast to other Clal purchases (such as Gilat Satellite Networks or BVR), this time, the Fundtech purchase was made when the shares were near their peak price. Fundtech was issued two and a half months ago on Wall Street at a price of $13 per share, and it closed last night at $21.2. The company raised $30 million n Wall Street in March in a $39 million issue that also included an offer for sale by shareholders.
Fundtech has developed a software system called Fed Plus for money transfers between banks, and last year posted significant revenue growth, the result of agreements with more than 100 banks throughout the US. The company ended 1997 with revenue of $8 million and a net profit of $636,000. In the first quarter of 1998, it had revenue of $3 million, and a net profit of $231,000.
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A recent update in CLAL's holdings:
March 25, 1999
 Dow Jones Newswires
Clal Group Reports 20.10% Fundtech Ltd. Stake
Dow Jones Newswires
WASHINGTON -- A group including Clal Industries and Investments Ltd. reported a 20.10% investment stake in Fundtech Ltd. (FNDTF).
In a filing Thursday with the Securities and Exchange Commission, the group said it currently holds 2.17 million ordinary shares of the Israeli company.
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Thursday , Feb 12, 1998 Sun-Thu at 18:00 (GMT+2)
Boaz Misholi Returns to Wall St: Fundtech to Issue at $100 Mln Value
By Shai Shalev
Ten years after selling his share in telecommunications company Comverse, entrepreneur Boaz Misholi, one of the founders of that company, is returning to Wall Street.
Fundtech, of which Misholi is chairman, and in which Aura, which he controls, is the largest investor, has filed an application with the US Securities Exchange Commission to issue its shares at a company value of $80-96 million before money, and $103-123 million after money.
Fundtech, which developed software facilitating electronic money transfers between financial institutions, seeks to issue 22% of its shares. The issue underwriters will be Robertson Stephens, for which this is the first Israeli issue in which it will be lead underwriter), Oppenheimer (a shareholder in Fundtech), and Lehman Brothers.
In the issue, Fundtech plans to offer to the public 2.25 million shares at a price of $10-12 per share. The owners intend to combine the issue with an offer for sale of 750,000 shares, of which Aura seeks to sell 162,000. The company expects a capital gain of $5-6 million.
Among the other shareholders in Fundtech are the Israel Growth Fund, Oscar Gruss, Elrov Technologies, Ampal, and Davidi Gilo.
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A little dated, but well worth reading if you're interested in VC strategy:
globes.co.il
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