VSoft Corporation, a global information and technology provider of process improvement solutions for financial institutions, announced at the BAI TransPay Conference and Expo the acquisition of Branch21, a VSoft customer and premier provider of service and software solutions for community banks and financial institutions nationwide since 1989.
The acquisition will allow VSoft to deliver its software solutions through an Application Service Provider (ASP) model utilizing Branch21's data centers. The services will continue to be offered under the Branch21 brand name.
"Providing managed services to banks allows them to reduce initial costs and improve efficiencies by eliminating the need to install and support in-house software," said Matt Slavens, president, Branch21. "Utilizing the services provided by VSoft and Branch21, banks will be able to focus on their core business to gain customers, increase deposits and grow the asset size. We are thrilled to be part of the VSoft family and work together to provide the best solutions to fit the needs of our customers."
Branch21 has been using VSoft's software solutions to provide managed services to banks throughout the U.S. since 2000. Solutions offered include Proof of Deposit with Image Exchange, Research, Archive, Statements, Branch Capture, Teller Capture and Merchant Capture. Branch21 also offers outsourced core banking services based on Information Technology, Inc (ITI) technology. Branch21 is headquartered in Davenport, Iowa with operational facilities in San Francisco, San Diego and Davenport. The Branch21 customer set includes over 50 mid-sized and community banks nationwide.
"With the growth of distributed capture and image exchange, the industry has witnessed a steady trend towards managed image-based check and payment services," said Bob Meara, senior analyst, Celent. "The acquisition of a data center gives a solution provider such as VSoft the opportunity to provide comprehensive solution options to customers."
The acquisition comes after a successful year of growth and change for VSoft with a revenue increase of 35 percent. VSoft was also recognized in 2007 for company growth and innovation by organizations such at Inc 5000, Deloitte and Touche and Bank Technology News.
"VSoft realized a growth in customer base as well as internal infrastructure expansion during 2007," said Murthy Veeraghanta, president, VSoft Corporation. "The acquisition of Branch21 positions VSoft for more growth in 2008 and the years to come. Our entry into the managed services business allows VSoft to complement our already broad solution portfolio with versatile delivery."