S1 To Acquire Mosaic Software

The acquisition will add a leading financial transaction solution to S1s suite of products and will enable S1 to offer financial services providers an ATM channel solution along with the S1 Enterprise integrated front-office suite, which already includes the branch, call center, Internet and voice customer interaction channels. The solutions developed by Mosaic provide flexible, open and extensible technology for processing electronic financial transactions. The solutions directly control ATMs, intercept cardholders bankcard transactions, and process these transactions online to core system accounts. The software is utilized by banks operating standard ATMs as well as by non-traditional financial service providers, including retailers that offer advanced, multi-function ATMs to customers for initiating transactions for money orders, transfers, pay check deposits, and bill pay. Mosaics software also manages payment authorization transactions initiated through point-of-sale (POS) devices, online retail sites, and Web-based call centers. Over the past 10 years, Mosaic has built a strong reputation and a customer base of approximately 210 financial institutions and retailers in more than 40 countries. Mosaics customers include Woodforest National Bank, Honda Federal Credit Union, Standard Bank South Africa, Mercantile Bank Limited, 7-Eleven, Marks and Spencer, and FedEx Kinkos. The company has a staff of 190, including more than 100 software developers, in offices in the U.S, the U.K, Australia, and South Africa. Under the terms of the transaction, S1 will pay $37 million in cash upon the closing of the transaction and up to an additional $15 million in cash may be paid in earn-out payments upon Mosaic achieving certain financial metrics during its fiscal year ending May 31, 2005. The closing of the transaction is subject to customary closing conditions. S1s ATM solution will be available independently or as a component of a complete solution that gives banks one view of customers across channels. S1 also offers the following major applications of S1 Enterprise 3.0: S1 Enterprise Teller, S1 Enterprise Sales and Service Platform, S1 Personal Banking, S1 Business Banking, S1 Corporate Banking, S1 Insurance, S1 Enterprise Call Center, S1 Enterprise Voice Banking (powered by Edify), and S1 Enterprise Analytics. More than 100 financial service providers have committed to S1 Enterprise solutions to realize measurable benefits through implementing multi-channel ready applications.