Metavante to acquire Paytrust
02 July 2002 | 2599 views | 0
Metavante Corporation is to acquire the assets of Paytrust, a New Jersey-based privately held online bill management company. Financial terms were not disclosed.
Through this acquisition, Metavante plans to consolidate its consumer service provider (CSP) operations onto one technology platform.
Joseph Delgadillo, Metavante president and chief executive officer, says: "The acquisition further demonstrates our significant commitment to the bill presentment and payment market, allowing us to add Paytrust's customers to those already using our electronic payment services."
The Paytrust CSP offerings include both electronic and scan-and-pay presentment of bills, invoices and statements, coupled with 'pay anyone' functionality. The company has developed proprietary technology including SmartBills, a bill aggregation tool now for 33 direct biller Web sites, representing 50 electronic billers; and SmartBalance, an online cheque register now connected to more than 200 financial institutions.
Integration costs resulting from the acquisition, primarily related to operating duplicate platforms for a limited period of time, are anticipated to be approximately $6 million after tax, and will be incurred over approximately nine months following the transaction. The acquisition is expected to be accretive to Metavante earnings in 2003.