Siebel Systems to acquire Eontec

Siebel Systems to acquire Eontec

CRM vendor Siebel Systems is to acquire Irish multi-channel banking software vendor Eontec for an initial $70 million in cash.

Under the terms of the agreement, an additional $60 million in cash, with a target of $30 million, may be paid in earn-out payments during 2005 based on revenue and contractual targets.

All Eontec employees will join Siebel's Retail Finance division, which will be led by Eontec CEO Patrick Brazel. He says the combined operation will deliver a comprehensive multi-channel banking system to meet the needs of institutions of all sizes.

Built on a J2EE application server platform, Eontec's component-based technology is designed to provide flexible deployment options for banks to provide services uniformly across multiple channels. The technology will be bundled with Siebel's customer relationship management console, call centre, analytics and compensation software and sold as three distinct packages: Siebel Branch Teller; Siebel Branch Platform Sales and Service; and Siebel Internet Banking.

Thomas Siebel, chairman and CEO, Siebel Systems, says: "Retail banks are increasingly realising they must transform branches from transactional centres into customer-centric sales and service centres that work seamlessly in concert with other channels. To do so, they require next-generation technology that not only replaces outdated teller systems, but also leverages CRM and business intelligence tools to reduce operational costs, improve employee productivity, and support business processes needed to strengthen customer relationships."

Excluding the impact of a one time merger-related charge, it is expected that the transaction will reduce Siebel Q2 earnings by up to $0.01 per share. There will be an expected one time charge in Q2 estimated at $3 million - $7 million.

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