Metavante to Acquire Advanced Financial Solutions
06 May 2004 - 10:00PM
PR Newswire (US)
Metavante to Acquire Advanced Financial Solutions Leading Provider
of Check-Imaging Technology to the Banking Industry to Join
Metavante Financial Services Group, the Second Acquisition in as
Many Weeks MILWAUKEE, May 6 /PRNewswire-FirstCall/ -- Metavante
Corporation, the financial technology subsidiary of Marshall &
Ilsley Corporation , today announced the signing of 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. "With federal 'Check 21' legislation
taking effect in October 2004, there is more emphasis than ever on
the rapid transformation of payments from paper to electronic,"
said Frank R. Martire, Metavante president and chief executive
officer. "Endpoint Exchange has clearly established itself as a
leader in the 'exchange game.' "Adding AFS' check-imaging
technology and Endpoint Exchange network to our existing payment
technologies, which include electronic presentment and payment, ACH
processing, electronic funds transfer and a debit card technology,
we will have the components needed to continue building out the
Metavante Payment Services Network," said Martire. "Our clients
will clearly benefit from the technology synergies that this
acquisition affords them in the electronic exchange of payment
transactions." 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&I's 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 AFS's 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 is leading the industry for payment
processing with an innovative, highly regarded product line," said
AFS President Gary Nelson. "It is rewarding that financial
institutions of all sizes have validated our check imaging exchange
technology. Earlier this year, Wachovia selected our xVision
software to allow it to receive electronic cash letters with
minimal modifications to its current systems. "Endpoint Exchange
leverages the technology that we developed for the first national
check image and settlement archive system for Singapore," said
Nelson. "Our technology has been up and operating since 2003 for
branch capture and check-image exchange with every banking location
in Singapore. AFS is truly improving the functionality of
electronic clearing and settlement for financial institutions of
every asset size and check imaging platform." 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. AFS was named to the Inc.
magazine 500 for four consecutive years, from 1998 to 2001. It has
received the PriceWaterhouseCoopers Innovator of the Year award
each year from 1999 to 2003. About AFS Founded in 1992, AFS has
delivered high-quality image-based and conventional check
processing solutions to the financial services industry. AFS was
one of the first companies to offer image and item processing
technology based on the Microsoft Windows .NET operating
environment. All AFS item-imaging solutions are designed from the
ground up with the functionality that banks and remittance
processors need for operating in a high capacity transaction-based
environment. Headquartered in Oklahoma City, Okla., AFS maintains
offices worldwide. For more information, see
http://www.afsimage.com/ . About Metavante Celebrating 40 years of
innovation, Metavante Corporation delivers virtually all of the
technology that an organization needs to offer financial services.
Metavante processes transactions of value by providing clients with
financial technology solutions that drive customer relationship
management, electronic banking, electronic funds transfer and card
solutions, electronic presentment and payment, financial account
processing, investment technology and retirement plan services.
Headquartered in Milwaukee, Wis., Metavante is wholly owned by
Marshall & Ilsley Corporation (NYSE:MI). Metavante is a
registered trademark of Metavante Corporation. For more
information, see http://www.metavante.com/ . This press release
contains forward-looking statements concerning M&I's and
Metavante's future financial results and operations, including
expected revenues, earnings, accounting entries, closing dates, and
operating activities. Such statements are subject to important
factors which could cause M&I's and Metavante's actual results
to differ materially from those anticipated by the forward-looking
statements. These factors include those referenced in M&I's
Annual Report on Form 10-K for the year ended December 31, 2003,
and may be described from time to time in M&I's subsequent SEC
filings, and such factors are incorporated herein by reference.
DATASOURCE: Metavante Corporation CONTACT: Chip Swearngan of
Metavante Corporation, +1-414-357-3688, Web site:
http://www.metavante.com/ http://www.afsimage.com/
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