Metavante to Acquire Advanced Financial Solutions

Friday 7 May 2004 00:38 CET | News

Metavante Corporation, has signed a definitive agreement to acquire Advanced Financial Solutions Inc. of Oklahoma City.

Advanced Financial Solutions Inc. (AFS) is the leading check-imaging technology provider for over 7,000 financial institutions in the United States, and 25 other countries. Its affiliate, Endpoint Exchange, is the only operational electronic check image clearinghouse in the world today. The acquisition includes AFS affiliates CheckClear LLC, which owns and operates Endpoint Exchange, and The Medical Banking Exchange, a healthcare payment-processing platform. The transaction is expected to close in June 2004, pending regulatory approval. AFS will become a Metavante subsidiary with the existing AFS management continuing in their positions. Endpoint Exchange -- the largest, and only network of its kind in operation -- enables U.S. financial institutions to clear their check-based transactions by exchanging check presentment information and images between member banks, savings and loans, credit unions, service bureaus, clearing houses and the Federal Reserve. Over 4,000 financial institutions have enrolled in the Endpoint Exchange Network. AFS, together with the acquisition announced by Metavante in April, have combined revenues of approximately $136 million in their most recently completed fiscal years. The transactions are expected to be neutral to M&Is earnings per share in 2004. The aggregate cash purchase price for the transactions is approximately $305 million, subject to an additional earn out in the AFS transaction based on AFSs future financial results. Upon completion, the transactions are expected to result in intangible assets, including goodwill, of approximately $290 million in the aggregate. Both transactions are expected to close in the second quarter. Developed in 1992, the AFS ImageVision architecture unites all processes and systems under one common infrastructure, providing a fully integrated and seamless approach to payment processing. AFS offers over 40 products and technology solutions, including fraud detection, positive-pay, account reconciliation, branch capture, and document/image archiving. Customers now process more than 50 million checks and documents daily using the AFS image-based recognition, payment, and remittance software. AFS employs approximately 325 persons at its corporate headquarters in Oklahoma City and at an engineering campus in Norman, Okla. AFS serves clients in 48 states and 25 countries, which in total comprise over 7,500 financial institution endpoints.

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Categories: Payments & Commerce | Payments General
Countries: World
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