Fundtech Expands Globally With Two Acquisitions

Thursday 28 October 2004 22:01 CET | News

Fundtech has signed a definitive agreement to acquire CashTech Solutions India Pvt. Ltd., a provider of cash management and electronic banking software located in Pune, India.

Under the terms of the definitive agreement, Fundtech will pay $2.9 million in cash at the closing and an additional $0.4 million in cash within 180 days of the closing. An additional amount of up to $3.7 million in cash will be paid over the next three years, contingent upon the financial performance of CashTech. The transaction is expected to close within two weeks. Fundtech expects the transaction to be neutral-to-slightly-accretive to adjusted earnings per diluted share in 2005, excluding non-cash charges to amortize certain acquired intangible assets. CashTech reported revenues of $3.4 million for the twelve month period ending September 30, 2004. Assuming the transaction closes by November 5, 2004, for the fourth quarter of 2004 we expect CashTech to increase Fundtechs consolidated revenues by $500-$600 thousand, and have no impact on income before amortization of intangibles. We expect amortization of intangibles to increase by $200 to $400 thousand on an annual basis. As previously announced in the Companys third quarter earnings release, Fundtechs Swiss subsidiary, bbp, announced the acquisition of Datasphere, a provider of interbank clearing and securities settlement systems in Europe with a client base of more than 70 financial institutions. Datasphere, based in Geneva, Switzerland, offers products for SWIFT, Swiss Franc clearing (SIC) and electronic securities clearing (SECOM). As the operator of the worlds largest SWIFTNet service bureau, bbp expects to realize numerous synergies with Datasphere. The companies have complementary geographic coverage in European markets; provide complementary hardware platform technologies; and expect to combine their product offerings to create unmatched breadth and depth.

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Categories: Payments & Commerce | Payments General
Countries: World
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Payments & Commerce