FRS, an S1 subsidiary and provider of regulatory and financial reporting and analytics technology, has signed a definitive agreement to acquire the key assets of risk management systems vendor Providus Software Solutions from Zions Bancorporation.
Under the terms of agreement, FRS will acquire the intellectual property and select assets of Providus' business, including current obligations to all customers. The value of the transaction is approximately $800,000 in cash, with additional consideration to be paid over time based on license sales.
Launched and backed by Zions Bancorporation in 2003, Providus' Risk Resolve operational risk management (ORM) product helps financial institutions address directives such as Sarbanes-Oxley, Basel II, FDICIA and GLBA.
FRS says it will offer the RiskResolve ORM system as part of its FinancialAnalytics suite of risk and regulatory compliance products.
Commenting on the acquisition, Alain Tayenne, general manager, FRS, says: "Combining our capabilities with those of Providus will assist customers in achieving consistent, enterprise-wide data collection and regulatory reporting, while obtaining a complete picture of their operational risk management profiles.
"As a combined entity, we will be well-positioned to play a role in facilitating the pending convergence of regulatory compliance and risk management practices around the globe."
Following the completion of the acquisition, which is expected to close within the next 30 days, FRS will establish an office in S1's existing Massachusetts facility which will serve as headquarters for the company's ORM business. FRS says "key" Providus executives will join the FRS management team.