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Metavante to Acquire VECTORsgi

Saturday 16 October 2004 12:04 CET | News

Metavante Corporation has signed a definitive agreement to acquire all the outstanding stock of Addison, Texas-based VECTORsgi.

The company will continue to operate under the name of VECTORsgi, and will become a wholly owned subsidiary of Metavante Corporation, with existing management continuing in their positions. VECTORsgi is a leading provider of banking transaction applications, including electronic check-image processing and image exchange, item processing, dispute resolution and e-commerce solutions for financial institutions and corporations. VECTORsgi technology has been licensed more than 2,300 times by financial institutions ranging in size from community banks to top-10 financial institutions to international banking organizations. It is used by each of the top 10, and 41 of the top 50 financial institutions in the United States. The transaction is expected to close in November 2004, pending regulatory approval. The transaction is expected to be approximately neutral to M&Is earnings per share in 2005. The aggregate cash purchase price for VECTORsgi is $100 million, with up to an additional $35 million to be paid based on meeting certain performance criteria. Upon completion, the transaction is expected to result in intangible assets, including goodwill, of approximately $91 million. In part for this acquisition as well as for other corporate purposes, M&I plans to issue approximately $150 million of common stock in the fourth quarter of 2004 in order to maintain its capital at desired levels. Any such issuance is subject to market conditions and changes in the timing, amount and terms. This press release does not constitute an offer of any securities for sale. VECTORsgi developed the Distributed Traffic Agent (DTA) for SVPCO, a clearinghouse owned by 19 of the nations largest banks to facilitate national image exchange. With DTA, banks exchange image files directly, while summary information moves through SVPCO as an intermediary, allowing for settlement and reporting.


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