Corillian to acquire InteliData

Corillian to acquire InteliData

US online banking software vendor Corillian has signed a definitive agreement to acquire loss-making electronic banking and bill payment firm InteliData Technologies in a cash and stock deal worth around $19.5 million.

Under the terms of the agreement, Corillian will issue approximately 4,918,032 shares of its common stock - worth about $17.1 million as of Thursday's closing share price of $3.48 - plus $4.5 million in cash to InteliData shareholders, subject to certain adjustments.

Virginia-based InteliData is reporting a 36% drop in fourth quarter revenues to $2.8m, compared to $4.4m for Q4 2003. Full year 2004 revenue fell 33% to $13.7m, compared to $20.6m in 2003.

Net loss for the fourth quarter and year to end-December 2004 was $2.9m and $33.2m respectively, compared to $1.1m and $1.7m for the comparable year-ago periods. Cash and cash equivalents as of year-end 2004 totaled $3.2m compared to $7.6m at year-end 2003.

Intelidata says because it has recurring losses from operations, it is experiencing difficulty in generating cash flow. Alfred Dominick, chairman and CEO, Intelidata, adds: "Consequently, we have been actively exploring strategic alternatives... These efforts have resulted in the definitive agreement to merge with Corillian."

In a statement, Corillian president and CEO, Alex Hart, says the acquisition will add a significant recurring revenue stream to the business.

He adds: "The majority of InteliData's customers are new bank relationships to Corillian, and we believe these relationships will provide substantial cross-sell opportunities for existing Corillian products and services."

Current InteliData customers include Bank of America, Wachovia, National City and Bank of the West. The company employs 48 staff at offices in Virginia, Ohio and Nebraska.

Corillian shares rose one cent to $3.48 on the news yesterday, while InteliData shares fell two cents to $0.29.

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