US banking systems vendor S1 Corporation has signed a definitive agreement to acquire electronic funds transfer technology firm Mosaic Software for a total consideration of $52 million.
Under the terms of the transaction, S1 will pay $37 million in cash upon closing. S1 says up to an additional $15 million in cash may be paid in earn-out payments upon Mosaic achieving certain financial targets during its fiscal year ending May 31 2005.
S1 says the acquisition will enable it add an ATM channel application to its Enterprise front-office suite, which already includes products for branch, call centre, Internet and voice customer interaction channels.
Mosaic's EFT technology directly controls ATMs, intercepts bank card transactions, and process these transactions online to core system accounts. The software also manages payment authorisation transactions initiated through point-of-sale (POS) devices, online retail sites and Web-based call centres.
The company was formed in April 1994 and is jointly owned by GE Equity, Business Connexion, the Dutch development finance company FMO, and senior management. The firm has a customer base of approximately 210 financial institutions and retailers in more than 40 countries and has a staff of 190, including more than 100 software developers, in offices in the US, the UK, Australia, and South Africa.
Commenting on the acquisition, Jaime Ellertson, CEO of S1, says: "With the acquisition of Mosaic, S1 is the only vendor in the financial services space that can enable institutions to extend multi-channel integration across all of their primary customer interaction channels.
Ellertson says the acquisition also extends S1's international operations and adds a significant customer base.