Digital Insight settles arbitration
25 July 2006 | 1193 views | 0
Source: Digital Insight
Digital Insight Corp. (NASDAQ:DGIN), the leading online banking provider, announced today that it has settled the escrow arbitration claims and related legal proceedings involving the former stockholders of Magnet Communications following Digital Insight's purchase of Magnet in 2003.
Under terms of the settlement agreement, Digital Insight recovered 119,834 of its common shares that have been held in escrow since the Magnet acquisition closed in November 2003. The balance of the escrow will be distributed to the former Magnet stockholders. The settlement has no impact on the Company's income statement for the second quarter ended June 30, 2006 or prior periods.
Moving forward, the settlement eliminates an ongoing legal expense associated with the legal proceedings and slightly reduces the Company's base of common shares outstanding. Resolving the arbitration also eliminates the potential distraction from Digital Insight's focus on its business operations.
Goodwill and equity on Digital Insight's balance sheet for the period ended June 30, 2006 will be adjusted lower to reflect the arbitration settlement.