The consideration comprises initial cash consideration paid on closing of $5.5 million and a performance-based earn out payable over two years, which is estimated at between $2.5 million and $3.5 million, $2.0 million of which is guaranteed.

In addition to the expected $8.25 million consideration being paid to acquire the business and assets of Concuity, Trintech expects to fund operational losses of the business of up to approximately $1.5 million from the date of acquisition through January 31, 2008.

Concuity is a Chicago, Illinois based private company which provides leading-edge technology solutions to optimize contract profitability for the health care industry. Concuity's primary value proposition is providing health care providers with software applications to allow them to recover revenue that has not been paid by payers due to the complexity of the health care billing process in the United States.

Concuity's solutions provide hospitals, integrated health systems and outpatient clinics the visibility and control needed to analyze and negotiate contracts with payers, ensure accurate compliance with contractual obligations, and resolve revenue loss tied to denials and underpayments of health care claims through reconciling the remittance (Explanation of Benefit) to the claim prepared on the basis of the payer contract.

Concuity delivers its web-based software suite, ClearContracts, through an application service provider (ASP) model and complements this technology with a revenue recovery services offering.

Concuity has 47 employees, the majority of whom will transfer with the acquired business, which currently service 18 clients, including Providence Health System, Sutter Health and Cape Cod Healthcare.

Trintech Chairman and CEO Cyril McGuire said, "The acquisition of the Concuity business continues Trintech's expansion into the fast growing health care market. Our primary focus will be to exploit the significant revenue cycle management opportunities for health care provider clients in the contract to claim to payment market sector. This synergistic acquisition demonstrates our commitment and determination to enter new growth markets which can best leverage our core competencies in reconciliation, transaction risk management and compliance."

Paul Byrne, Trintech President added, "Trintech proposes to invest in the business to expand its position in this growing market which, whilst diluting earnings in the short term, is expected to deliver a robust profitable ASP business in the medium term. Concuity has built an impressive business with a market leading product, strong customers, experienced management and a proven ASP business model with over 75% of its revenue recurring annually."

Trintech expects the acquired business to generate revenue of approximately $800,000 for the remaining two months of Trintech's fourth quarter and incur an operational loss of approximately $400,000 for the same period. For the fiscal year commencing February 1, 2007, Trintech expects the acquired business to generate revenue in the $5.5 million to $6.0 million range and incur a net operating loss of approximately $1.1 million. Trintech expects the business to be accretive to earnings beginning in the fiscal year commencing February 1, 2008, excluding the impact of any amortization of the purchase price.

This acquisition reinforces Trintech's commitment to build a strong growth business focused on its core competencies of providing financial software solutions and technology services specializing in transaction verification, reconciliation management, process automation, and compliance for financial departments seeking greater insight into critical transaction processes.