Fidelity National Financial to acquire Aurum Technology
09 February 2004 | 6037 views | 0
Fidelity National Financial has signed a definitive agreement to purchase Aurum Technology, a Texas-based provider of banking and processing software and services for the community bank and credit union markets, for $305 million.
FNF will acquire Aurum from an investment group led by Chicago-based private equity firm Willis Stein & Partners for approximately $175 million in cash and $130 million in FNF stock.
Under the acquisition, the firm will be integrated with FNF's Integrated Financial Solutions (IFS) division, headed by Gary Norcross.
Aurum reported $193 million in revenue in 2003, and has more than 1100 customers, including 600 credit union clients. The vendor's primary offerings include core processing, cheque imaging, ATM/EFT processing, branch automation, business intelligence and network services.
William Foley, chairman and CEO, FNF, comments: "The acquisition more than doubles our existing community bank customer base and Aurum's 600 credit union customers make FNF one of the largest providers of technology-based business solutions to this key market segment."
FNF says the acquisition will make it the only provider of core processing applications for every segment of the financial services market, including de novo banks, credit unions, community banks and regional banks as well as national and global financial institutions.
The transaction is expected to close late in Q1 2004.