Metavante to Acquire VECTORsgi
15 October 2004 - 9:00PM
PR Newswire (US)
Metavante to Acquire VECTORsgi Leading Provider of Check-Imaging
and Exchange Technology to the Nation's Largest Banks to Join
Metavante Financial Services Group MILWAUKEE, Oct. 15
/PRNewswire-FirstCall/ -- Metavante Corporation, the financial
technology subsidiary of Marshall & Ilsley Corporation
(NYSE:MI), today announced the signing of a definitive agreement to
acquire all the outstanding stock of Addison, Texas-based
VECTORsgi, a portfolio company of Thoma Cressey Equity Partners.
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&I's 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. "Because it serves many of the largest
financial institutions in the United States, the acquisition of
VECTORsgi complements our acquisition earlier this year of Advanced
Financial Solutions, as both companies specialize in providing
electronic check-imaging technology. With this combination, we will
have in place the industry's most comprehensive suite of
applications to address Check 21 needs and beyond, including
distributed capture, image-archiving, and workflow solutions
including research, kite and fraud detection," said Frank R.
Martire, Metavante president and chief executive officer. VECTORsgi
developed the Distributed Traffic Agent (DTA) for SVPCO, a
clearinghouse owned by 19 of the nation's 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. "VECTORsgi has
patented technology that allows banks to take full advantage of the
new Check 21 legislation. We provide image capture and image
exchange solutions for many of the nation's largest banks," said
VECTORsgi President Sydney Smith Hicks, Ph.D. "Joining Metavante
gives VECTORsgi the ability to continue its technology leadership
while allowing our developers to work with other talented teams
within the Metavante family. Together, we can continue to provide
innovative, industry leading solutions. Our clients will benefit
from the commitment Metavante has made to be a financial
institution focused company, which fits with our operating
philosophy." "The ability to offer solutions from both VECTORsgi
and Advanced Financial Solutions in the same corporate family
provides the industry -- from community banks to the world's
largest -- a single provider in Metavante that will support the
industry's transition from paper-based check exchange to the fully
electronic realm that kicks off with Check 21," said Paul T.
Danola, senior executive vice president and group executive,
Metavante Financial Services Group. "Beyond Check 21, VECTORsgi has
additional opportunities in the ePayments business, where the
company has been supporting business-to-business electronic
payments for nearly 20 years." About VECTORsgi VECTORsgi is a
leading provider of financial transaction and e-payment processing,
image processing and image exchange, item processing, dispute
resolution and e-commerce solutions for financial institutions and
corporations. Its products have been licensed more than 2,300 times
by financial institutions ranging in size from community banks to
top ten financial institutions to international banking
organizations. The Addison, Texas-based company, founded in 1976,
which employs 155 persons, provides innovative solutions to not
only help financial institutions and corporations streamline their
item processing operations and payment systems, but also to
leverage their image process investment and maximize the benefits
of check truncation. Additionally, VECTORsgi also offers Consulting
Services that provide management consulting and business practice
improvement ensuring financial institutions are more profitable.
For more information, see http://www.vectorsgi.com/ . About
Metavante Metavante Corporation delivers banking and payment
technologies to financial services firms and businesses worldwide.
Metavante products and services drive account processing for
deposit, loan and trust systems, image-based and conventional check
processing, electronic funds transfer, and electronic presentment
and payment. The company's services are marketed as Metavante or
through the Advanced Financial Solutions, Endpoint Exchange
Network, Kirchman, Medical Banking Exchange, NuEdge Systems, NYCE,
Paytrust, Printing For Systems or Response Data brands, all of
which are trademarks of Metavante Corporation. Headquartered in
Milwaukee, Metavante ( http://www.metavante.com/ ) is wholly owned
by Marshall & Ilsley Corporation (NYSE:MI). 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 (a) receipt of regulatory
approvals without unexpected delays or conditions; (b) timely
implementation and execution of integration plans; (c) retention of
customers and critical employees; (d) no unanticipated changes in
laws, regulations, or other industry standards affecting
Metavante/VECTORsgi businesses which require significant product
redevelopment efforts, reduce the market for or value of its
products or render products obsolete; (e) those referenced in
M&I's Annual Report on Form 10-K for the year ended December
31, 2003, under the heading "Forward-Looking Statements" and such
other factors as may be described from time to time in M&I's
subsequent SEC filings, which 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.vectorsgi.com/
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