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Metavante to Acquire Advanced Financial Solutions
Leading Provider of Check-Imaging Technology to the Banking Industry to Join
Metavante Financial Services Group, the Second Acquisition in as Many Weeks
MILWAUKEE, May 6 /PRNewswire-FirstCall/ -- Metavante Corporation, the
financial technology subsidiary of Marshall & Ilsley Corporation , today
announced the signing of a definitive agreement to acquire Advanced Financial
Solutions Inc. of Oklahoma City.
Advanced Financial Solutions Inc. (AFS) is the leading check-imaging technology
provider for over 7,000 financial institutions in the United States, and 25
other countries. Its affiliate, Endpoint Exchange, is the only operational
electronic check image clearinghouse in the world today.
The acquisition includes AFS affiliates CheckClear LLC, which owns and operates
Endpoint Exchange, and The Medical Banking Exchange, a healthcare
payment-processing platform. The transaction is expected to close in June 2004,
pending regulatory approval. AFS will become a Metavante subsidiary with the
existing AFS management continuing in their positions.
Endpoint Exchange -- the largest, and only network of its kind in operation --
enables U.S. financial institutions to clear their check-based transactions by
exchanging check presentment information and images between member banks,
savings and loans, credit unions, service bureaus, clearing houses and the
Federal Reserve. Over 4,000 financial institutions have enrolled in the
Endpoint Exchange Network.
"With federal 'Check 21' legislation taking effect in October 2004, there is
more emphasis than ever on the rapid transformation of payments from paper to
electronic," said Frank R. Martire, Metavante president and chief executive
officer. "Endpoint Exchange has clearly established itself as a leader in the
'exchange game.'
"Adding AFS' check-imaging technology and Endpoint Exchange network to our
existing payment technologies, which include electronic presentment and
payment, ACH processing, electronic funds transfer and a debit card technology,
we will have the components needed to continue building out the Metavante
Payment Services Network," said Martire. "Our clients will clearly benefit from
the technology synergies that this acquisition affords them in the electronic
exchange of payment transactions."
AFS, together with the acquisition announced by Metavante in April, have
combined revenues of approximately $136 million in their most recently
completed fiscal years. The transactions are expected to be neutral to M&I's
earnings per share in 2004. The aggregate cash purchase price for the
transactions is approximately $305 million, subject to an additional earn out
in the AFS transaction based on AFS's future financial results. Upon
completion, the transactions are expected to result in intangible assets,
including goodwill, of approximately $290 million in the aggregate. Both
transactions are expected to close in the second quarter.
Developed in 1992, the AFS ImageVision architecture unites all processes and
systems under one common infrastructure, providing a fully integrated and
seamless approach to payment processing. AFS offers over 40 products and
technology solutions, including fraud detection, positive-pay, account
reconciliation, branch capture, and document/image archiving. Customers now
process more than 50 million checks and documents daily using the AFS
image-based recognition, payment, and remittance software.
"AFS is leading the industry for payment processing with an innovative, highly
regarded product line," said AFS President Gary Nelson. "It is rewarding that
financial institutions of all sizes have validated our check imaging exchange
technology. Earlier this year, Wachovia selected our xVision software to allow
it to receive electronic cash letters with minimal modifications to its current
systems.
"Endpoint Exchange leverages the technology that we developed for the first
national check image and settlement archive system for Singapore," said Nelson.
"Our technology has been up and operating since 2003 for branch capture and
check-image exchange with every banking location in Singapore. AFS is truly
improving the functionality of electronic clearing and settlement for financial
institutions of every asset size and check imaging platform."
AFS employs approximately 325 persons at its corporate headquarters in Oklahoma
City and at an engineering campus in Norman, Okla. AFS serves clients in 48
states and 25 countries, which in total comprise over 7,500 financial
institution endpoints. AFS was named to the Inc. magazine 500 for four
consecutive years, from 1998 to 2001. It has received the
PriceWaterhouseCoopers Innovator of the Year award each year from 1999 to 2003.
About AFS
Founded in 1992, AFS has delivered high-quality image-based and conventional
check processing solutions to the financial services industry. AFS was one of
the first companies to offer image and item processing technology based on the
Microsoft Windows .NET operating environment. All AFS item-imaging solutions
are designed from the ground up with the functionality that banks and
remittance processors need for operating in a high capacity transaction-based
environment. Headquartered in Oklahoma City, Okla., AFS maintains offices
worldwide. For more information, see http://www.afsimage.com/ .
About Metavante
Celebrating 40 years of innovation, Metavante Corporation delivers virtually
all of the technology that an organization needs to offer financial services.
Metavante processes transactions of value by providing clients with financial
technology solutions that drive customer relationship management, electronic
banking, electronic funds transfer and card solutions, electronic presentment
and payment, financial account processing, investment technology and retirement
plan services. Headquartered in Milwaukee, Wis., Metavante is wholly owned by
Marshall & Ilsley Corporation (NYSE:MI). Metavante is a registered trademark of
Metavante Corporation. For more information, see http://www.metavante.com/ .
This press release contains forward-looking statements concerning M&I's and
Metavante's future financial results and operations, including expected
revenues, earnings, accounting entries, closing dates, and operating
activities. Such statements are subject to important factors which could cause
M&I's and Metavante's actual results to differ materially from those
anticipated by the forward-looking statements. These factors include those
referenced in M&I's Annual Report on Form 10-K for the year ended December 31,
2003, and may be described from time to time in M&I's subsequent SEC filings,
and such factors are incorporated herein by reference.
DATASOURCE: Metavante Corporation
CONTACT: Chip Swearngan of Metavante Corporation, +1-414-357-3688,
Web site: http://www.metavante.com/
http://www.afsimage.com/