WAUSAU, the industry leader in distributed payment and document processing, announced today that it has acquired the assets of DMP Payment Systems (Data Management Products, Inc.) from First National of Nebraska Inc. (FNNI).
DMP is an innovative leader in image-based processing systems, providing automated solutions for payment and return/exception item processing, with particular strength in the wholesale lockbox solutions market. The deal establishes the industry's top end-to-end lockbox solution provider, uniting WAUSAU's market-leading share of retail lockbox and ACH solutions with DMP's top position in the wholesale lockbox market.
"This deal combines the number one retail provider with the number one wholesale provider for an unparalleled position in the lockbox solutions market," said Joe Delgadillo, President and CEO for WAUSAU. "By uniting two industry leaders, customers of both companies will benefit from our expanded capabilities across the payments market space."
Together, WAUSAU and DMP solutions process over one-third of the industry's retail and wholesale payments, which, market-wide, are estimated at nearly 9 billion annual retail lockbox transactions and roughly 450 million business-to-business wholesale payments. WAUSAU solutions also process over 35 percent of the industry's Accounts Receivable Conversion (ARC) transactions to ACH.
WAUSAU's retail lockbox solutions are renowned for reducing exception work and increasing the velocity of money. This provides WAUSAU customers great advantages through the automation of consumer-to-business payment processing. The DMP wholesale lockbox platform is recognized for its capabilities in handling complex workflows and for its B2B online expertise.
The acquisition of DMP provides WAUSAU the opportunity to leverage current payment volumes with more electronic payment capabilities and specialization in vertical market niches, including healthcare, non-profits, property management and government entities. This move is part of WAUSAU's strategy to offer a comprehensive accounts payable through accounts receivable strategy for its customers.
"The combination of WAUSAU and DMP unites the best of breed lockbox solutions s in the market today," said Jim Mills, President of DMP. "Our products and talented personnel will work together to create outstanding synergies that will benefit both organizations."
DMP, with a staff of 60, will retain its operations in Omaha, Nebraska, and Mills will continue to lead the DMP organization.
WAUSAU and DMP share many current customers in the retail and wholesale lockbox space. ImageRPS, WAUSAU's remittance platform, is used by four of the industry's top six lockbox processors. IntegraPAY, the DMP lockbox platform, is operated within 22 of the top 100 financial institutions.
WAUSAU's remittance customer base includes over 230 financial institutions, corporations, utilities, non-profits and governmental institutions. DMP maintains relationships with over 60 customers.
In addition to its remittance industry strength, WAUSAU is recognized as the market leader in remote capture. WAUSAU's Remote Corporate Capture suite was rated "Best of Breed" by Celent, the respected industry analyst group, in its 2006 review. WAUSAU offers a full suite of web-based, PC-based, lockbox and ASP options for Remote Corporate Capture, and also provides complete workflow and archive solutions within its enterprise content management product line.
"Our organizations are viewed as industry experts in our respective fields," Delgadillo said. "We will leverage this expertise and talent to enhance both companies' product offerings. WAUSAU is the first company that offers a proven, experienced and installed base of retail and wholesale customers. From remote capture to electronic clearing to archive and workflow, we now provide a complete, end-to-end solution for the market's remittance processing needs."
Founded in 1980, DMP had been operated since 1988 as a wholly-owned subsidiary of First National of Nebraska, Inc., an $18 billion bank holding company headquartered in Omaha, Nebraska.
Terms of the sale have not been publicly disclosed.
Separately, WAUSAU, the industry leader in distributed payment and document processing, announced today that First National Bank of Omaha (FNBO), a division of First National of Nebraska, an $18 billion bank holding company headquartered in Omaha, Neb., has chosen WAUSAU as its key solutions provider for industry-leading lockbox, remote capture and branch capture solutions.
FNBO, the 15th largest retail lockbox processor, has selected WAUSAU's ImageRPS solution to replace a competitor's solution in its lockbox processing center. After reviewing the breadth of WAUSAU solutions, an extensive evaluation was also made to enhance FNBO's remote capture offerings with the use of WAUSAU's Remote Corporate Capture and Branch Capture applications.
"FNBO is committed to delivering transaction processing solutions for our customers that increase the speed of their money movement, whether that be through our world-class lockbox processing operation, through our capture capabilities for our corporate customers or in our branches," said Russ Oatman, Senior Vice President of the Financial Institutions Group at FNBO.
"We are very pleased to work with WAUSAU to implement these innovative solutions that will both enhance our processing speed and deliver operational efficiencies for our organization."
FNBO is a significant remittance processor in the Midwest, delivering retail and wholesale lockbox solutions through its Omaha-based processing center.
WAUSAU's ImageRPS retail and wholesale solutions, which FNBO will implement, offer advanced transaction technology that is flexible and scalable for the customer, whether an organization receives recurring business or personal checks, partial or full remittance payments, or single check or full-page transactions. WAUSAU customers continue to lead the industry in Accounts Receivable Conversion (ARC) generation, processing 35 percent of the 2.2 billion ARC transactions generated in 2006.
"WAUSAU is the industry's leading solution provider in ARC, with our ImageRPS solutions processing more than one-third of ARC conversions annually," said Nancy Langer, President -- Enterprise Financial Solutions for WAUSAU. "With FNBO's recognized lockbox processing operation, the implementation of our ImageRPS retail and wholesale solutions will provide state-of-the-art functionality for its lockbox customers, allowing them to speed their money movement through both ARC and Image Exchange."
FNBO will also implement WAUSAU's industry-leading web-based Remote Corporate Capture (WebDDL) and Branch Capture (ImageBranch) technology across the organization.
WAUSAU was named "Best of Breed" among Remote Corporate Capture solutions reviewed by Boston-based Celent in the respected analyst firm's "Remote Deposit Capture Vendors: Crossing the Chasm" report published in July, 2006. Based on advanced technology and breadth of features categories, WAUSAU was cited as the overall performance leader.
WAUSAU's industry-leading Remote Corporate Capture suite includes Web-based, PC-based, lockbox and ASP options. The WAUSAU Remote Corporate Capture solution captures deposits and payments at remote locations and accomplishes complete image processing of each item. The solution then electronically transmits balanced and proven images to the client's depository bank for final electronic clearing.
In reviewing WAUSAU's ImageBranch technology, Celent cited its broad client-side functionality on both Windows and Smart clients, its significant branch-level configuration capabilities and its demonstrable teller capture scalability.
"WAUSAU's remote capture technology is recognized as the industry leader for both the advanced features and breadth of functionality we offer to our clients," Langer said. "FNBO will be positioned to offer its customers cutting-edge remote capture solutions for both deposits and payments, including within its recognized lockbox processing operation."