Cass Information Systems Sells Business Assets of St. Louis-Based Software Subsidiary, Government e-Management Solutions (GEMS) Inc., to Harris Computer Systems.ST. LOUIS -- Cass Information Systems, Inc. (Nasdaq: CASS) has sold the business assets of a software subsidiary, Government e-Management Solutions, Inc. (GEMS), to Harris Computer Systems. (GEMS is owned by Cass Commercial Bank, another CASS subsidiary.) Based in suburban St. Louis, GEMS provides proprietary financial, human resource and revenue management software to government entities nationwide. It employs approximately 70 people who offer complete conversion, installation, training, maintenance and support of its software at more than 200 sites - the majority, mid-size municipalities. GEMS is on pace to generate revenues of nearly $6 million in 2005, a 15% increase over the $5.2 million in revenues it generated in fiscal 2004. As for net income, the company lost $400,000 during the first nine months of 2005, compared to a net loss of $1.9 million in fiscal year 2004. Headquartered in Ottawa, Ontario, Canada, Harris is a leading North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. provider of financial management (FM) and customer information systems (CIS Cis (sĭs), same as Kish (1.) (1) (CompuServe Information Service) See CompuServe. (2) (Card Information S ) solutions for local governments and utilities. Founded in 1976, Harris operates nine offices throughout North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and currently employs approximately 225 people. The acquisition price was $7 million (U.S.) in cash, subject to post-closing fiscal year-end Fiscal Year-End The completion of a one-year, or 12-month, accounting period. Notes: The reason that a company's fiscal year often differs from the calendar year and does not close on Dec 31, is due to the nature of company's needs. adjustments. Cass projects that the transaction will have a neutral net impact on fourth quarter and fiscal 2005 earnings. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Jeff Bender, Harris chief executive officer, GEMS will become an operating division within Harris and remain in its current office in St. Louis. "We are excited about adding the GEMS product suite, its customers and employees to our company. GEMS and its employees have consistently focused on building long-term mutually beneficial Adj. 1. mutually beneficial - mutually dependent interdependent, mutualist dependent - relying on or requiring a person or thing for support, supply, or what is needed; "dependent children"; "dependent on moisture" relationships with customers - a key attribute of our business model," Bender added. "We will provide our new customers with outstanding service and support, a number of very good options for the future and a lot of flexibility. We believe in working with customers to address their specific needs and circumstances and do not believe in forcing our agenda. The transaction will enable us to expand the sales channel available for the GEMS product suite and create an opportunity to significantly increase the size of the GEMS business unit." "GEMS meshes perfectly with the Harris portfolio," said Lawrence A. Collett, Cass chief executive officer and chairman. "While our four-year stewardship stewardship the occupation of being a steward or custodian. Referring to animals it implies the caring sort of relationship based on an acceptance of the need to include the rights of animals in overall plans to maintain financial viability. of GEMS generated an overall positive outcome, the company was not a core element of our growth strategy. We believe that GEMS customers and employees will be in better hands with Harris given its exclusive focus on providing software solutions." GEMS entered the government software business in January, 2001 when it acquired the assets of a predecessor company. Since then, GEMS has significantly expanded its product portfolio, and significantly increased the number of its installed sites. Cass Information Systems is the nation's leading provider of transportation, utility and telecom invoice payment and information services See Information Systems. . The company, which has been involved in the payables services and information support businesses since 1956, pays over $15 billion annually in invoices on behalf of its customers from processing centers in St. Louis, Mo., Columbus, Ohio Columbus is the capital and the largest city of the American state of Ohio. Named for explorer Christopher Columbus, the city was founded in 1812 at the confluence of the Scioto and Olentangy rivers, and assumed the functions of state capital in 1816. , Boston, Mass. and Greenville, S.C. The support of Cass Commercial Bank, founded in 1906, makes Cass Information Systems unique in the industry. Note to Investors Certain matters set forth in this news release may contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are provided to assist in the understanding of anticipated future financial performance. However, such performance involves risks and uncertainties that may cause actual results to differ materially from those in such statements. For a discussion of certain factors that may cause such forward-looking statements to differ materially from the company's actual results, see the company's reports filed from time to time with the Securities and Exchange Commission including the company's annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2004. Editor's note Editor's Note (foaled in 1993 in Kentucky) is an American thoroughbred Stallion racehorse. He was sired by 1992 U.S. Champion 2 YO Colt Forty Niner, who in turn was a son of Champion sire Mr. Prospector and out of the mare, Beware Of The Cat. Trained by D. : Cass Information Systems is based at 13001 Hollenberg Drive in St. Louis (Bridgeton), Mo. 63044. Harris Computer Systems makes its headquarters at 1 Antares Drive, Suite 400 Ottawa, Ontario, Canada K2E 8C4 Government e-Management Solutions makes its headquarters at 121 Hunter Ave. in St. Louis (Ladue), Mo. 63124. |
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