Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : BCE Emergis - global e-commerce -- Ignore unavailable to you. Want to Upgrade?

To: Benny Baga who wrote (204)	11/28/1998 1:46:00 AM
From: rocki	Read Replies (3) \| Respond to of 1341

Benny, let the competition begin! You mentioned competitors were entering the Canadian market, just found this, old news 10Nov, Montreal Gazzette. It does state who the players are, important dates are 30Nov to submit the proposals and the selection is 11Jan99. Media Coverage MPACT buys E-finance rival Spends $50 million for Internet bill-payment system The Gazette, Tuesday, November 10, 1998 MPACT Immedia Corp. is spending $50 million to buy a competitor that's in the running to operate a system that will allow online customers of Canada's major banks to receive and pay bills on the Internet. In five years, that prize contract would be generating between $100 million and $150 million a year in revenue for MPACT, said Rory Olson, MPACT's executive vice president (business development). Montreal-based MPACT, a subsidiary of Bell Canada, is buying Newstar Technologies Inc.'s electronic finance division, which provides software and services to 400 clients, including financial institutions. Yesterday's acquisition will make MPACT the top provider of electronic commerce services to Canadian banks, Olson said. Newstar, based in Toronto, competes with MPACT in the business of providing electronic bill-payment processing to the major banks. Newstar dominates that market, with about 60 per cent, while MPACT controls 20 per cent. Paying bills with click of a mouse MPACT was keen on Newstar because it has developed a banking system that allows consumers to receive and pay bills online. The system combines Newstar technology with software developed by Microsoft Corp. and First Data Corp. Newstar's aim is to land a major contract with Canada's big banks. The banks have set up a consortium that will create a central portal through which consumers will receive their bills over the Web, then pay them electronically with the click of a mouse. Currently, a bank's online user can pay bills online, but must still receive a paper bill in the mail. The bank's new system will be similar to Interac, through which consumers can pay bills using bank machines. Newstar will be up against big competitors. IBM Corp., CheckFree and a joint venture of Electronic Data Systems Corp. and Oracle Corp. are also expected to submit proposals to the banks by Nov. 30. The banks are to announce by Jan. 11 which of the companies will deploy the system, Olson said. Utilities and other companies that send out huge numbers of bills would save with the system, proponents say. It costs such firms between 50 cents and $2.50 to process a paper bill, said Terry Ham, president of Newstar's E-finance division. The electronic version would cost a fraction of that. "What you're talking about is presenting a service that would be available to every consumer in Canada, and it'll hit approximately 80 per cent of all corporations in Canada," Ham added. "That, by any stretch of the imagination, is a huge potential opportunity." MPACT is buying Newstar's 135-employee electronic finance division, which had revenue of $23.5 million in the last fiscal year, ended June 30. Earnings before interest, depreciation and amortization for the period were $1.8 million. (Newstar's other operations, which focus on accounting software for the real estate industry were not part of the deal with MPACT.) MPACT, which in August merged operations with Bell Canada's electronic commerce division, had revenue of $28 million in 1998. Bell has a 65 per cent controlling interest in MPACT. As part of the deal, MPACT is also getting Newstar's I2 technology, which allows banks and corporations to create personalized Web sites for customers, based on information in customer files. The $50 million price includes $32.5 million in cash, with the balance in MPACT common shares and options, to be payable at the close of the transaction, which is expected Dec. 14. The deal is subject to regulatory approval. If MPACT gets the contract to run the bank's new bill payment system, it will also pay out "other cash and share considerations" over a period ending Oct. 1, 2000. Olson said those payments will be based on performance. MPACT stock closed up 30 cents at $11.30 on the Toronto Stock Exchange yesterday.