Bottomline to buy customer acquisition specialist Andera

Bottomline to buy customer acquisition specialist Andera

Bottomline Technologies has struck a deal to buy customer acquisition software provider Andera in a cash and stock deal worth around $48 million.

Andera helps financial institutions tap digital channels to acquire customers, with the firm's oFlows platform designed to make it easy for people to open accounts and make loan applications.

Founded in 2000, the Rhode Island-based outfit has helped over 500 banks and credit unions process more than 4.5 million new account applications.

Norm DeLuca, GM, banking and financial services, Bottomline, says: "Our strategy is to help financial institutions grow by acquiring and deepening customer relationships through digital channels. Andera's innovative solutions will enable our clients to grow revenues and compete and win in digital banking."

Under the deal, Bottomline will pay $44.5 million in cash and 102,000 shares of its stock - which closed on 31 March at $35.15 - for Andera.

The revenue contribution from the transaction is expected to be $2 million in the fourth quarter of fiscal 2014 and $10 million in 2015. Bottomline says the deal should be accretive by two cents in fiscal 2015.

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