Heyde eyes payments with Gifts acquisition

Heyde eyes payments with Gifts acquisition

European IT services group Heyde has acquired US-based payments systems company Gifts Software for an undisclosed sum.

The acquisition, effective immediately, will be made through a non-cash contribution against the issue of new Heyde shares from authorised capital.

Founded in 1995, New York-based Gifts (Global Integrated Funds Transfer & Telecommunication Systems) has over 35 international banking customers, including State Street Bank & Trust, Deutsche Bank, Dresdner Bank, Banca di Roma, Banco Santander and Rabobank.

Gifts, which also provides payment solutions for Web based e-commerce applications, is expected to generate sales of approximately $7 million in 2000 and is profitable. Jawaid Khan, founder and CEO of Gifts, will continue to manage the company, which will be integrated into Elaxy, Heyde's software products division.

Dieter Heyde, founder and chairman of the Germany-based company says the acquisition will provide a platform for Heyde's growth in the US as well as increased access to the US financial community. Additionally, Gifts B2C e-payments software will bolster Heyde's current B2C product portfolio enabling the end-to-end delivery of straight-through payments solutions says Heyde.

"Our Group is well positioned to capitalise on market opportunities in the growing e-banking sector," claims Heyde.

The global e-banking market is expected to generate revenue of approximately US $25 billion this year. According to independent market researchers, this figure will double by 2005. In this year alone $10 billion will be invested in payment systems, notes Heyde, with a forecast compound annual growth rate of 15% in the coming five years.

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