Dallas-based banking technology vendor Carreker Corporation is to acquire payments outfit Check Solutions, from joint-owners IBM and First Tennessee Bank.
Under the agreement, Carreker will pay $109.5 million in cash and assume the net liabilities of Check Solutions. Carreker says it will finance the transaction through the use of $55 million of its own cash and $54.5 million in loans from an undisclosed third party. The transaction is expected to close in the second quarter of 2001.
Carreker’s eXceptions, eRM Exceptions Management, eTrac, eInform, CheckLink, Float Management and Recon solutions will be combined with the Check Solutions products to create a new check solutions group within the company’s global technology solutions division.
The Check Solutions management team will remain intact and president Joe Rowell will become the president of the new division, reporting to Mike Hansen, who is installed as vice chairman of the office of the president of Carreker Corporation and head of the global technology solutions division. The group will be headquartered in Memphis, Tennessee.
Denny Carreker, chairman and CEO of Carreker Corporation, says the acquisition is another step in the group's strategy of delivering solutions across the complete spectrum of payments processing. He say: "With the acquisition of Check Solutions, we are positioned to provide solutions across all of these competencies in payments systems around the globe. Until now, there has been no single organisation with enough functional scope and customer penetration to broadly facilitate the further transition to electronic payments."