Source: Harland Financial Solutions
Harland Financial Solutions, Inc., a wholly owned subsidiary of John H. Harland Company (NYSE:JH), has acquired Fair Isaac Corporation's (NYSE:FIC) core processing business based in Heathrow, Florida. Terms of the agreement were not disclosed.
The acquisition includes the Phoenix System, an integrated core banking solution that operates in both the Windows(R) NT and Unix environments, features open relational database choices and leverages the latest Internet and network technology to optimize delivery channel integration. The Phoenix System is delivered in both in-house and service bureau configurations. Also included in the transaction are the Phoenix Internet Banking System, also known as IBANK, and the TradeWind international trade finance management system.
Harland Financial Solutions currently delivers in-house and outsourced core processing technology to more than 1,000 banks, thrifts and credit unions. More than 5,000 other clients are served by the company's leading branch automation, lending, mortgage, customer relationship management, item processing, electronic document management and business intelligence solutions. Harland Financial Solutions' market presence extends to many Phoenix System clients who already use the company's Encore!(R) branch automation, Touche(R) CRM, CheckQuest(R) item processing and LaserPro(R) Compliant Lending solutions.
"The Phoenix System will allow us to serve the mid-to-large community bank & thrift market not currently addressed by our turnkey SPARAK(R) core system, which is very popular with smaller community banks," said John O'Malley, president of Harland Financial Solutions. "By integrating our full suite of products with the Phoenix System, we continue to pursue the strategy of offering our clients and prospects the most integrated end-to-end systems available, while remaining open to other third party solutions. This acquisition also provides us with a proven service bureau delivery option for banks & thrifts, which is a significant expansion to the breadth of our current offering."
Internationally, the Phoenix System is currently used by banks, building societies and credit unions, enabled by its support for multiple currencies, languages and interest accrual methodologies.
"The sale of our Phoenix business helps us to continue delivering effectively on our mission of providing analytics-powered solutions, software and services that result in smarter decision strategies across the entire customer lifecycle," said Tom Grudnowski, chief executive officer, Fair Isaac Corporation. "At the same time, we've achieved our goal of placing our Phoenix System, Phoenix Internet Banking System and TradeWind clients, and the experienced employees who support them, in the hands of an acknowledged leader in the core systems and broader financial technology industry."
While Harland expects the acquisition to be mildly dilutive to 2004 diluted earnings per share, the company reaffirms its expectation for earnings to be in the range of $1.86 to $1.91 per share.
CuServ is a trademark, and SPARAK, ULTRADATA, Encore!, Touche, CheckQuest and CaptureQuest are registered trademarks of Harland Financial Solutions, Inc. All other brands and products or services are trademarks and/or service marks of their respective owners, may be registered, and should be treated appropriately.