California-based Internet banking systems vendor Digital Insight has signed a definitive agreement to acquire Magnet Communications, a provider of online business banking and cash management software.
Atlanta-based Magnet Communications provides online cash management and business banking software, both on an outsourced basis from its data centre and as a licensed software implementation, to a client base of large and mid-tier financial institutions including ABN Amro, Bank of America, Commerce Bancorp, Silicon Valley Bank and SunTrust Banks.
The firm's revenues for the 12 months ended September 30 2003 were approximately $17 million, an increase of more than 25% compared to the previous twelve months.
Digital Insight says the acquisistion will enable it to offer a complete package of cash management products for the entire business banking market, from small businesses to large corporations.
Jeff Stiefler, chairman, president and CEO, Digital Insight, adds: "The transaction will also allow Magnet to combine its best-of-breed cash management solution with the balance sheet strength that is critically important to large financial institutions."
The cash and stock transaction is expected to close during Q4 2003.