Siebel Systems Acquires Eontec

Tuesday 20 April 2004 00:34 CET | News

Siebel Systems has acquired Eontec Limited, to expand its solutions offering for banking to include branch teller and Internet banking systems. The solution will also offer a standards-based, service oriented architecture to handle a wide range of customer interactions through multiple channels, including the branch, call center, Internet, and ATM.

Under the terms of the deal, $70 million in cash will initially be paid to Eontec shareholders, and up to an additional $60 million in cash, with a target of $30 million, may be paid in earn-out payments during 2005 based on achieving revenue and contractual milestones. Excluding the impact of a one time merger-related charge, it is expected that the transaction will reduce Q2 earnings, as guided by the company on April 15, by up to $0.01 per share. There will be an expected one time charge in Q2 estimated at $3-7 million. However, the company is still in the process of completing its asset allocation analysis and this number is subject to change. All Eontec employees, who bring extensive expertise in developing and delivering multichannel retail banking solutions, will join Siebels Retail Finance division. Eontecs technology offers banking functionality that can be readily configured and extended to evolve with future business needs. Built on an industry-standard J2EETM application server platform, Eontec technology is highly scalable and reliable, providing flexible deployment options that enable banks to provide services uniformly across multiple channels. Additionally, Eontecs technology advances Siebel Systems long-term strategy of supporting a standards-based services architecture and offers benefits that significantly increase bank operational and processing efficiency. Siebel Branch Teller Siebel Systems will combine its business intelligence and retail banking CRM solutions with Eontecs multichannel transactional capabilities to deliver the only complete banking solution with components that can be used individually or in combination to increase bank profitability while broadening and strengthening customer relationships. For example, a new solution, Siebel Branch Teller, increases cross-selling and up-selling of additional products and services by integrating the customer insight offered by the Siebel Customer Relationship Console with the financial transaction capabilities of Eontec Teller. Siebel Branch Platform Sales and Service Siebel Branch Platform Sales and Service, a solution with which agents can help the customer make better decisions about financial needs, will incorporate Eontecs financial transaction capabilities to provide a fully integrated solution that manages the complete customer life cycle. This enhanced solution can significantly increase employee productivity by providing embedded incentive compensation management, and real-time organizational branch performance information through branch analytics. Additionally, Siebel Branch Platform Sales and Service offers customer needs analysis, product information and recommendations, lead tracking, and the ability to process applications for products and services. Siebel Internet Banking A third solution bolstered by the acquisition of Eontec is Siebel Internet Banking. Banks deploying this solution will be able to move rapidly to a highly scalable, standards-based Internet banking technology platform providing next-generation functionality. This solution includes additional, personalized online services and transaction capabilities and leverages prebuilt sales, service, and marketing business processes available to other channels. With this solution, Siebel Systems can reduce the overall cost of providing Internet banking service and increase online revenue generation potential. Commitment to Support Eontec Customers With this acquisition, existing Eontec customers will gain access to a complete banking solution and will benefit from ongoing research and development investments by Siebel Systems to integrate and extend Eontec technology. Siebel Systems will continue to support the Eontec product indefinitely to ensure the success of existing Eontec customers. Leading financial services organizations worldwide that have sta

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Categories: Payments & Commerce | Payments General
Countries: World
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