HP and CIBC Forming Joint Venture to Provide IT Services for Financial Processing and E-Commerce.
New Company Forecasts Sales of $1 Billion (Cdn. $1.5 Billion) Over Four Years; Will Pool Expertise in Financial Transaction Processing of CIBC Subsidiary, INTRIA, with HP's Strengths in Information Technology Services
Hewlett-Packard Company (NYSE:HWP) and INTRIA Corporation, a wholly owned subsidiary of the Canadian Imperial Bank of Commerce, today announced plans to form INTRIA-HP, a joint venture dedicated to providing end-to-end IT operations services for mission-critical business activities such as financial processing and electronic commerce.
Over the next four years, INTRIA-HP revenues are expected to exceed $1 billion (Cdn. $1.5 billion) from North American customers in the financial, retail, manufacturing, government and utilities sectors. Dan Branda has been appointed president of INTRIA-HP, which will be headquartered in Toronto, Canada. Branda was formerly chairman, president and chief executive officer, Hewlett-Packard (Canada) Ltd. The joint venture, subject to regulatory approval, will begin operations with more than 750 former INTRIA employees. Further job creation is anticipated.
"Partnering with INTRIA reflects HP's innovative growth strategy," said Ann Livermore, HP vice president and general manager, Software and Services Group. "This joint venture will allow us to expand our services business in the Canadian market and offer new services to our North American customers, especially in the financial services industry and the rapidly growing e-business market. INTRIA-HP's strength in supporting MVS, AS/400 and Tandem platforms will greatly enhance HP's ability to provide multiplatform services to customers throughout North America."
INTRIA-HP intends to lead the market in providing services to reduce IT processing costs, improve application availability, and accelerate time-to-market for electronic commerce and related financial-processing initiatives. These services will be marketed directly as well as through HP, INTRIA and CIBC sales channels. Initial clients will include CIBC, HMV and President's Choice Financial.
"This move represents another innovative step by CIBC in building the bank of the future," said Holger Kluge, president, CIBC, Personal and Commercial Banking. "As our customers embrace e-business strategies, they're telling us they need the expertise and infrastructure of INTRIA to help them get started quickly. This joint venture is another example of INTRIA bringing world-class capability to CIBC customers."
COMBINING WORLD-CLASS CAPABILITIES
INTRIA's main computing facilities in Toronto are among the most advanced in North America, providing anytime, anywhere computing. INTRIA processes more than 4.2 billion online transactions annually, including 541 million point-of-sale (POS) transactions and 344 million Automated Teller Machine (ATM) transactions. INTRIA's point-of-sale and ATM online availability for CIBC is the best of any major Canadian financial institution.
This world-class capability, combined with HP's high-availability service offerings, gives the joint venture a solid platform for growth in the North American services market. INTRIA brings its leadership position in servicing retailers' electronic cash registers across Canada, along with its extensive electronic operations capabilities, for activities such as PC banking; telephone banking; and an extensive, nationwide banking-machine network.
HP contributes its expertise in client/server outsourcing, high-availability support and systems integration; its Internet Protocol (IP) networking architecture and security capabilities; and its systems- and network-management tools. In addition, it will provide access to e-commerce capabilities such as those of its VeriFone subsidiary.
INTRIA-HP will be linked to HP's network of Operations Services Centers (OSCs) to better manage North American customers through the sharing of tools, processes and technologies for systems, network and desktop management. The joint venture will also benefit from early access to emerging technologies from HP Labs.
"This joint venture is focused on the e-business operations needs of Canadian customers," said Dan Branda, president, INTRIA-HP. "Furthermore, INTRIA-HP provides Canadian companies with access to the wide breadth of skills in HP's North American services organization. In addition, the joint venture is an investment in the Canadian market that will fuel growth by delivering services to the much larger North American market."
ABOUT INTRIA CORPORATION
Established in November 1996, INTRIA provides an operations infrastructure that enables companies to efficiently process both paper and electronic transactions. INTRIA processes more than 20 million transactions daily. Its "ready-to-use" infrastructure enables companies to migrate from paper to electronic processing and then to electronic business operations.
Upon closing of the joint venture, INTRIA will consist of two business units: INTRIA Items Inc., a joint venture between INTRIA and Fiserv Solutions of Canada which provides items processing services (e.g. cheque, statement, remittance, currency management, and records management), and INTRIA-HP, a joint venture between INTRIA and HP. Information about INTRIA can be found on the World Wide Web at http://www.INTRIA.com.
CIBC is one North America's leading financial institutions, with assets of more than $282 billion as of January 31, 1998. CIBC provides customers with a full range of products and services through a choice of convenient channels, including 3,700 bank machines, telephone banking (1-800-465-CIBC), PC Banking, the Internet (www.CIBC.com), branches across Canada and offices around the world.
Hewlett-Packard Company is a leading global provider of computing, Internet and intranet solutions, services, communications products and measurement solutions, all of which are recognized for excellence in quality and support. HP has 125,300 employees and had revenue of US$42.9 billion in its 1997 fiscal year.
Information about HP and its products can be found on the World Wide Web at http://www.hp.com.
This release includes forward-looking statements which are subject to a number of risks and uncertainties, such as the challenges of coordinating a joint venture, penetrating new markets, and general market conditions. Actual future results may vary, and no inference about the future results of the joint venture's owners should be made from statements in this release.
CONTACT: The Hoffman Agency for HP
Claire Maledon, 408/975-3046
Goodman Communications for INTRIA Corporation
Gene Diamond, 416/924-9100
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|Date:||Aug 18, 1998|
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