Metavante to acquire Vicor
29 June 2006 | 2800 views | 0
Metavante Corporation, the banking and payments technology subsidiary of Marshall & Ilsley Corporation (NYSE: MI), today announced the signing of a definitive agreement to acquire VICOR, Inc., of Richmond, Calif., a leading provider of corporate payment processing software.
VICOR's software simplifies and automates complex payments. Its flagship product, Receivable Information Delivery System (RIDS), is a lockbox and remittance system that delivers wholesale, retail, and scannable payment processing functionality on a single platform.
"By enhancing Metavante's commercial treasury solutions with licensed, rules-based automated transaction processing for complex payments and receivables, we will address a financial institution's need to increase processing efficiency and revenue," said Frank Martire, Metavante president and chief executive officer.
The VICOR acquisition is expected to close in the third quarter, pending regulatory approvals and other customary closing conditions. VICOR would then become a subsidiary of Metavante Corporation, with existing management continuing in their positions. Terms of the transaction were not disclosed. The purchase is not expected to have a material impact on the financial results of Metavante or Marshall & Ilsley Corporation.
"VICOR's achievements in the large-bank market also offer Metavante several opportunities for growth," said Paul Danola, president, Metavante Financial Solutions Group. "A hosted version would also enable our clients to offer their corporate customers an automated processing solution which includes remote distributed capture for deposits and payments."
VICOR will also provide Metavante with the opportunity for future growth in other markets that require complex payments and receivable processing, such as healthcare and government payments, and the brokerage industry, where Metavante also offers a suite of other payment-related products. With RIDS, an organization can establish a rules-based criteria that automates the record keeping, reconciliation and disbursement of a deposit into multiple accounts and systems of record. VICOR already provides a seamless payment and documents automation platform that supports the specialized government processing contracts of several of its large-bank customers.
According to Bob Kirk, VICOR president and chief executive officer, "We've built an organization that offers a feature-rich product set that has been recognized as the market leader in complex payment processing. Additionally, we have garnered an impressive list of both clients and strategic partnerships across multiple market segments. Now, by combining VICOR with the strength of Metavante, we will extend our market leadership to become the dominant provider of commercial treasury solutions in the financial services industry."