Metavante looks to imaging with Vectorsgi acquisition
15 October 2004 | 4150 views | 0
Metavante, the financial technology arm of banking group Marshall & Ilsley, is to acquire banking transaction and electronic imaging vendor Vectorsgi from Thoma Cressey Equity Partners for a maximum $135 million.
Vectorsgi - which has applications installed each of the top 10, and 41 of the top 50 financial institutions in the US - will become a wholly owned subsidiary of Metavante Corporation, with existing management continuing in their positions.
The aggregate cash purchase price is $100 million, with up to an additional $35 million to be paid based on meeting certain performance criteria. The transaction is expected to close next month. M&I plans to issue approximately $150 million of common stock in the fourth quarter of 2004 in order to maintain its capital at desired levels.
Frank Martire, Metavante president and chief executive officer says the acquisition complements the take-over earlier this year of Advanced Financial Solutions, as both companies specialise in providing electronic cheque imaging technology.
"With this combination, we will have in place the industry's most comprehensive suite of applications to address Check 21 needs and beyond, including distributed capture, image-archiving, and workflow solutions including research, kite and fraud detection," he says.
Vectorsgi developed the Distributed Traffic Agent (DTA) for SVPCO, a clearinghouse owned by 19 of the US' largest banks to facilitate national image exchange. With DTA, banks exchange image files directly, while summary information moves through SVPCO as an intermediary, allowing for settlement and reporting.
Beyond Check 21, Vectorsgi has additional opportunities in the e-payments business, where the company has been supporting business-to-business electronic payments for nearly 20 years, says Paul Danola, senior executive vice president and group executive, Metavante Financial Services Group.