Some recent press....
CFI ProServices Acquires ULTRADATA Corp. and MECA Software; Plans Name Change
PORTLAND, Ore., May 17 /PRNewswire/ -- CFI ProServices, Inc. (Nasdaq: PROI - news), today announced two major acquisitions that will make CFI the only single source provider of integrated electronic commerce and related information management solutions for all types and sizes of financial institutions. CFI is acquiring both information management software leader ULTRADATA Corp. (Nasdaq: ULTD - news) and home banking/e-commerce pioneer MECA Software LLC.
The resulting entity will have annualized 1999 sales estimated to be more than $150 million, and will operate under a new name that has yet to be chosen.
With these acquisitions, CFI will be the first software provider to have over one million consumers using its technology to perform on-line banking functions through their financial institutions. This makes CFI the undisputed leader in all aspects of home banking. CFI is taking the lead by combining, in one company, information management technology with all aspects of branch and online financial services -- from PC banking and bill payment to personal financial management and e-commerce. The new CFI will offer back office core processing software that provides financial institutions of all types with true information management capabilities, together with software solutions for branch automation, loan origination, new account opening, cross selling, servicing, and call centers.
''This is a defining moment for all three companies, and for the ability of financial institutions to get truly integrated, real time, solutions from one source,'' said Matt Chapman, chairman and chief executive officer of CFI ProServices, Inc. ''We not only broaden our Internet offerings, but we now have all the back office information management solutions that make effective e-commerce possible. With this combination, CFI is positioned to help financial institutions of all types and sizes manage their critical information, compete effectively through the Internet, and leverage the Web as both a delivery channel for their products and a powerful new marketing medium.''
Pleasanton, Calif.-based ULTRADATA Corp. is a leading provider of information management solutions for relationship-oriented financial institutions. The acquisition will enable CFI to extend real-time, integrated, end-to-end solutions to banks, thrifts, and credit unions alike.
''This combination strengthens and accelerates our ability to fulfill our mission,'' said Robert J. Majteles, president and chief executive officer of ULTRADATA Corporation. ''We are a pioneer in providing relationship-oriented financial institutions such as credit unions with information management solutions that help them create long-term, mutually beneficial relationships with their members. This merger allows us to expand into the commercial bank markets and offer best of breed solutions to complement our information management systems without diluting our focus on our core market.''
''With ULTRADATA, we can offer institutions of all sizes an integrated information management solution combining real-time host processing with our branch, call center, and e-commerce technology,'' said CFI's Chapman. ''This completes our host acquisition strategy that we began in January by acquiring a PC-based system oriented toward smaller financial institutions. We can now address every critical back office function a financial institution has, and every point of contact with its customers. Our technology solutions will help transition all types and sizes of financial institutions to the new, real-time technologies they need to survive and thrive in the 21st century.''
MECA Software LLC, based in Trumbull, Conn., is a pioneering developer of personal financial management software and Internet solutions for financial service providers. MECA invented the personal financial management software category in 1983 with the initial release of Managing Your Money. Today, MECA is a leader in the design, development and execution of customized software and service solutions for the electronic delivery of financial products and services. MECA offers branded software solutions that enable financial institutions to offer their customers electronic access to a broad array of financial product and service offerings. MECA also offers product conceptualizing and analysis, custom development, consulting services, manufacturing and fulfillment, technical support, training and marketing.
The MECA acquisition will close this week. CFI will assume approximately $10 million of net liabilities of MECA and will issue 50,000 shares of CFI stock to MECA's owners. MECA's 1998 revenues were $23.6 million. MECA employs 266 people, the large majority of whom will be retained by CFI and who will continue to work from MECA's current location. CFI is buying 100 percent of MECA from the consortium of leading North American financial institutions that have owned MECA since 1995.
The ULTRADATA transaction will close during the third quarter, after shareholder approvals are completed. CFI is paying $7.50 a share, for a total of $63 million, for ULTRADATA, which had 1998 revenues of $30.8 million. ULTRADATA employs 175 people, who will continue to work from ULTRADATA's current location. ULTRADATA has 430 credit union customers nationwide with a total of $30 billion in assets and 5.7 million members.
U.S. Bancorp Libra, a member of the U.S. Bancorp family that also includes U.S. Bancorp Piper Jaffray, will be arranging the financing for the ULTRADATA transaction.
CFI ProServices, Inc. of Portland, Oregon is a leading provider of integrated, PC-based software to financial institutions including back office accounting, branch automation, loan origination, new account opening, call centers, cross-selling and electronic banking. Over 6,000 financial institutions of all sizes use CFI's software. CFI has offices in 11 additional cities across the country. Its World Wide Web address is www.cfipro.com.
This release contains forward-looking information and estimates of performance that involve risk and uncertainty. CFI's product offerings are subject to change, cancellation and performance. For additional information, please refer to the Company's Securities and Exchange Commission reports filed under the Securities Exchange Act.
SOURCE: CFI ProServices, Inc.
biz.yahoo.com
I'm not saying that this has a better long-term potential then the combination of SONE, EDFY, FICS & INTU Combo....but I am saying from what I see...it's overlooked in a dynamic and explosive segment....on line banking...IMO.
I'd say from a portfolio stand point we take up a SONE position to fold our EDFY into when the merger takes place, and chuck a few bucks on this one and let them fight it out...it looks like a good value play if nothing else. |
