Fundtech buys India's CashTech Solutions
28 October 2004 | 8392 views | 0
Payments technology vendor Fundtech has signed a definitive agreement to acquire CashTech Solutions, a provider of cash management and electronic banking software located in Pune, India.
Under the terms of the agreement, Fundtech will pay $2.9 million in cash at the closing and an additional $0.4 million in cash within 180 days of the closing. An additional $3.7 million in cash will be paid over the next three years, depending on the financial performance of CashTech.
CashTech reported revenues of $3.4 million for the twelve month period ending September 30, 2004
Reuven Ben Menachem, CEO of Fundtech, says: "This transaction will expand our product lines, broaden our geographic coverage, deepen our management resources and add a large pool of software developers with deep domain knowledge."
The transaction is expected to close within two weeks.
Fundtech also announced that its Swiss subsidiary bbp had acquired Datasphere, a Geneva-based provider of interbank clearing and securities settlement systems.
Datasphere has a client base of more than 70 financial institutions and offers products for Swift, Swiss Franc clearing (SIC) and electronic securities clearing (SECOM). Financial terms of the transaction were not disclosed.