In its first overseas acquisition, US-based BankServ has taken over the TurboSwift business of Netik, adding international payments capabilities to its domestic Fedwire and ACH solution suite.
Reported only as an "all cash" deal, BankServ says it was able to finance the acquisition of the SwiftNet-certified interface device business without raising equity and that it expects the business to be cash-flow-positive in the first year.
Peter Hosokawa, BankServ chief operating officer, says the two companies already have mutual customers following the integration of BankServ's GFX system with TurboSwift more than a year ago.
He adds: "We have found the needs of our customers increasingly include tightly integrated Swift processing for payments as well as functions such as foreign exchange processing, trade services, and international securities processing. We have solved that problem with the BankServ GFX and TurboSwift offerings."
The firm says it will retain key personnel from TurboSwift and will maintain staff and an office in London while moving the headquarters of the business to San Francisco. Mike Golds, who has been with TurboSwift in the US for ten years, will continue to manage the company's international reseller network, which will include Netik.
Dave Kvederis, president and CEO of BankServ, says the company plans to use the acquisition to develop a Swift service bureau product for US customers, modelled on its successful Fedwire ASP business.
"Our bank clients have developed great confidence in BankServ's ability to operate outsource applications for the banks," he says. "I can't think of a more logical extension of BankServ's Application Service Provider services than to include cross-border transaction processing."
John Wise, CEO of Netik says the deal enables the company to focus on delivery of the InterView Investment Hub integration product to the securities industry.