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Technology Stocks : Edify (EDFY) IPO -- Any Comments? -- Ignore unavailable to you. Want to Upgrade?

To: Mr. Mo who wrote (289)	5/17/1999 5:52:00 PM
From: TLindt	Respond to of 355

I've read Fall 99, or 4th Quarter when the deal takes place. I've been in and out of EDFY this past year....I think I'll hang around now after picking this up cheap a month or so ago. I really like the deal, heres what Reuters is saying lately. Monday May 17 5:21 PM ET Security First Makes 2 Acquisitions For $1.4 Bln By Nicole Volpe NEW YORK (Reuters) - Security First Technologies Corp. (Nasdaq:SONE - news) said Monday it agreed to acquire its two largest competitors for about $1.4 billion. The new expanded company, which will be called S1 Corp., will be a giant in the emerging field of providing Web-based systems for companies like banks and brokerages to interact internally and with customers. ''I think this clearly establishes us as the industry leader,'' Security First Tech Chief Executive James Mahan said in a telephone interview. He added he expected the deal to close in early fall. The merger of privately-held, Brussels-based banking software company FICS Group NV and customer service software company Edify Corp. (Nasdaq:EDFY - news) into S1 would eliminate Security First's competition, analysts said. ''Before, Edify was the number one competitor in the U.S. and FICS was the competition internationally,'' said Rob Martin, an analyst at Security Capital Trading. ''This does make them the de facto leader in a not a very well-known market. They are kind of like the Inktomi of financial services.'' Security First shares closed down $3 at $51. Edify closed down 63 cents at $14.94. After the deals, the company would be left with some $1.3 billion in goodwill, or the premium paid above a company's worth when it is acquired. Security First Chief Financial Officer Bob Stockwell said he currently sees a fourth quarter charge of 20 percent of that goodwill, with amortization, or the reduction of the goodwill debt as ''very significant over the next few years.'' He said the charge would be written as ''in process research and development,'' acknowledging that the Securities and Exchange Commission has become increasingly strict with such accounting. He said issues around how to amortize the goodwill was still under review. Mahan said the company expects to reach break-even on a cash flow basis, which excludes goodwill, in the fourth quarter of 2000. After the deal, S1 will provide a range of consumer banking, brokerage and insurance systems, as well as small business and corporate electronic banking and software to helps banks create financial reports. FICS, with 650 employees, provides financial reporting software used by banks to meet regulatory requirements, as well as remote banking software for customers. Michel Akkermans, FICS's founder, chairman and chief executive officer, will serve as president of S1. Edify, of Santa Clara, Calif., supplies voice and Web-based software that allows customers to gain access to account information and other data. Jefferey Crowe, Edify's CEO and president would be responsible for corporate development strategy, finance and administration at the merged company. ''About six weeks ago we met with Akkermans and things got along real well, so we decided to see Jeffery Crowe,'' said Mahan, about how the deal was made. ''We started in Brussels and worked our way back to California.'' Under the terms of the deal, Security First would issue 20 million shares of its stock in the FICS transaction, valued at about $1.08 billion. Security First and Edify have agreed that Security First would issue a total of about 6.4 million shares, valued at about $345 million. Security First also entered a partnership with financial software company Intuit Inc (Nasdaq:INTU - news) in which Intuit will invest $50 million in Security First. ''This should be seen as a solid endorsement by an industry leader in software applications,'' said Martin.

To: Mr. Mo who wrote (289)	5/17/1999 7:03:00 PM
From: TLindt	Read Replies (1) \| Respond to of 355

>>>Do you see any possibility that someone else comes along and attempts to outbid SONE? That would make it interesting...BCE EMERGIS had their eyes on this EDFY too out of Canada....(IMF.TO). TransPoints partner in Canada for Bill Presentment...it all just speeds up EBPP, because SONE and FICS don't have to re-create what EDFY has done...just refine it and integrate it. Makes me wonder what platform those Canadian Banks are running on? I know the Royal Bank Of Canada hold a stake in SONE and is a big Customer of SONE....so I guess this moves CKFR north via EDFY connections to EBPP. Message 9511289