CheckFree Corporation Completes Acquisition of Intuit's Transaction Processing Unit; Total banks under contract now 232, total subscribers climb to 1.28 million.ATLANTA--(BUSINESS WIRE)--Jan. 27, 1996--CheckFree Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CKFR CKFR Checkfree Corporation (stock abbreviation, AMEX) , www.checkfree.com) and Intuit Inc. (NASDAQ:INTU INTU Intuit, Inc. (stock abbreviation, AMEX) ) today announced that CheckFree has completed its acquisition of Intuit's online banking and bill payment processing unit known as Intuit Services Corporation (ISC (1) (Internet Systems Consortium, Redwood City, CA www.isc.org) An organization founded by Paul Vixie, Carl Malamud and Rick Adams in 1994 and later sponsored by UUNET and other Internet companies. ). CheckFree is the largest volume provider of home banking and bill payment transaction processing Updating the appropriate database records as soon as a transaction (order, payment, etc.) is entered into the computer. It may also imply that confirmations are sent at the same time. Transaction processing systems are the backbone of an organization because they update constantly. in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . With the acquisition of ISC, the number of financial institutions for which CheckFree has contracts to provide processing services increases from 194 to 232 -- including nine of the country's 10 largest. Total subscribers for CheckFree after the acquisition climbed to 1.28 million. "CheckFree's reliable, open processing architecture is now a single source, offering financial institutions complete flexibility, access to multiple payment systems and complete control," said Pete Kight, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of CheckFree. Kight noted that the company's processing functions with all major personal financial management software applications and delivers bill payments through all established payment networks including the ACH, MasterCard's RPS rps abbr. revolutions per second (r) and Visa's E-PAY(r). CheckFree acquired ISC for 12.6 million shares of common stock, representing 23% of CheckFree's 54.2 million shares outstanding. "With its acquisition of ISC, we feel that CheckFree is well positioned as a leader in the electronic commerce transaction processing market. As a major shareholder in CheckFree, Intuit's strategic investment in CheckFree will allow us to participate in this rapidly growing market," said James Heeger, CFO See Chief Financial Officer. of Intuit. To account for its investment in CheckFree on the cost method of accounting, Intuit must ultimately retain less than 20% of CheckFree's outstanding shares. Intuit intends to meet this requirement by selling approximately 2 million CheckFree shares in an orderly fashion within several months following registration of resale of the shares. The sale of these shares is subject to certain restrictions agreed to by Intuit as part of the acquisition agreement. Recently, CheckFree, Intuit and Microsoft announced their joint development of Open Financial Exchange, a unified specification for the exchange of financial data over the Internet, aimed at making it easier for financial institutions to go to market with home banking, bill payment and brokerage products. "With the advent of Open Financial Exchange, CheckFree processing is the best opportunity short and long term for financial institutions," said Kight. "Our processing services for electronic banking, bill payment, bill presentment See EBPP. and brokerage are available now. They are a reality, not a promise. And, with a common specification in place, financial institutions can get to market right away with the confidence that they will be supported long term as they add additional functionality to their remote banking products." Founded in 1981, CheckFree Corporation is the leading provider of electronic commerce services, software and related products for 1.28 million consumers, 1,000 businesses and 850 financial institutions. CheckFree designs, develops and markets services that enable its customers to make electronic payments and collections, automate paper-based recurring financial transactions and conduct secure transactions on the Internet. Certain of the statements in this news release contain forward-looking statements that involve risks and uncertainties. These include, without limitation, statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc plans and objectives for future operations, the development of the electronic commerce market, the dependence on strategic alliances, the impact of competitive services and products, the timely development and acceptance of new services and products, the timely implementation of client service contracts, and the various risks inherent in the electronic commerce business, and other risks and uncertainties detailed from time to time in the periodic reports filed by each Company with the Securities and Exchange Commission, including CheckFree's Transition 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 six months ended June 30, 1996. CONTACT: Intuit Inc. Virginia L. Miller, 415/944-3507 or CheckFree Corporation Matt Lewis, 770/734-3404 matt_lewis@atl.checkfree.com |
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