BankServ acquires Symtec Solutions
29 January 2004 | 1207 views | 0
In its second overseas acquisition in six months, BankServ, a leading electronic funds transfer company based in San Francisco, has acquired the business of Symtec Solutions LTD, a top provider of international money transfer and SWIFT financial messaging software headquartered in London, England. Symtec Solutions clients include top-tier financial institutions around the world with especially strong presence in the United Kingdom, Africa, India, the Middle East and Latin America.
BankServ provides products to banks and businesses to move funds electronically. In the United States, electronic funds transfers are normally processed via the Fed wire and Automated Clearing House (ACH) networks. Banks use BankServ to wire transfer money over Fed wire on behalf of their clients. Businesses and government agencies use BankServ to collect bill payments from consumers using electronic checks through the ACH. The acquisition of Symtec expands BankServ's existing international funds transfer capability and opens access to a broader base of bank clients around the world.
Terms of the agreement were not disclosed. Only reported as an "all cash" deal, BankServ said it was able to finance the acquisition without raising equity and that it expects the acquisition to be cash-flow-positive and profitable in the first year. The acquisition closed January 1st and was approved by the boards of directors of both companies.
"The Symtec acquisition will significantly enhance our ability to reach new markets beyond those currently covered by BankServ's international distribution network," said Dave Kvederis, president and CEO of BankServ, "giving us a stronger base to sell and launch the combined products of BankServ and Symtec worldwide". He added that "the combined distribution network will total twenty-one international distributors and will provide coverage in all continents."
"The BankServ acquisition of Symtec Solutions made great sense for the shareholders, customers and employees of both companies" said Jeremy Goddard, Managing Director of Symtec Solutions. "Providing a common marketing, support, and distribution strategy for the combined products ensures the aggressive pursuit of market share, increasing customer satisfaction and shareholder value."
Randy Gutierrez, general manager of BankServ's wire transfer business, added that "as a result of the acquisition, privately held BankServ will add more than a hundred new bank clients worldwide to its already robust U.S. and International client list" and that he is "excited about the addition of the so many fine staff members from Symtec." Gutierrez added that "there is great synergy with the cultures, products and business philosophies of both companies and the acquisition will allow us to accelerate product development and effective use of delivery channels in the international and domestic marketplaces."
Peter Hosokawa, BankServ COO, said "key personnel from Symtec Solutions will be retained and a new BankServ subsidiary will be created in London to house international operations using the existing Symtec facility as its subsidiary headquarters." Hosokawa added that "Goddard will manage worldwide sales and distribution of the combined companies' international businesses."