US Web-only bank NetBank is to acquire Financial Technologies Incorporated (FTI), a privately-held provider of ATMs and retail transaction processing services, for cash and $1 million worth of restricted stock.
The final agreement also provides for additional cash payments based on FTI's performance over the next five years.
FTI has been profitable in each year of its seven-year operating history. Its deployment of more than 4300 machines across the country places it fifth among the top third-party, off-premise ATM providers in the US. On average, FTI machines process approximately 1.5 million or $60 million worth of transactions per month.
Tommy Glenn, founder and president, FTI, comments: "By leveraging NetBank's financial and intellectual capital, we have the opportunity to grow our core business and expand high-potential initiatives, such as our merchant processing and pre-paid services."
Douglas Freeman, chairman and CEO, NetBank, says the acquisition will enable the firm to build its transaction processing business in a quick and cost-effective way.
"Our companies have a similar mission to provide small institutions or non-bank retail businesses the means of distributing ancillary financial services to their existing customers," says Freeman.
Pending regulatory approval, FTI will operate as a subsidiary of NetBank. The deal is expected to close within the fourth quarter and be immediately accretive.