BISYS ANNOUNCES AGREEMENT TO PURCHASE 401-K RECORDKEEPING BUSINESS
/following is repeat from yesterday to points needed/ LITTLE FALLS, N.J., June 30 /PRNewswire/ -- The BISYS Group, Inc.
(NASDAQ: BSYS), announced today that the company has signed an agreement to purchase The Barclay Group, Inc.
With a purchase price of $10 million, BISYS anticipates the transaction will be non-dilutive to earnings per share in fiscal 1994. Barclay's revenue for the trailing 12 months was approximately $9 million, with margins approaching BISYS' company average. Barclay, a subsidiary of the Ethyl Corporation (NYSE: EY), located in Ambler, Pa., provides administrative support and recordkeeping for 401-K plans to more than 2,000 individual companies. Barclay works closely with investment management partners, providing marketing and proposal support for the sales representatives of the brokerage, insurance and mutual fund organizations which distribute Barclay services. "We have long targeted the 401-K arena as a natural next step for BISYS, so Barclay is a key acquisition for us," according to Lynn Mangum, chairman and chief executive officer of BISYS. "This transaction expands our financial services recordkeeping into the 401-K marketplace, and we now have the opportunity to package 401-K services for the commercial customers among our client banking organizations. Barclay services the fastest growing segment of the 401-K marketplace, and we see tremendous potential for the creation of new plans for companies with less than 1,000 employees. "Barclay has high client satisfaction, fully featured products and services, and over 90 percent of the revenues are recurring. These characteristics, combined with a talented, seasoned management team, make The Barclay Group an excellent complement to BISYS' overall businesses," Mr. Mangum said. "Joining BISYS will enhance our technological capabilities and strengthen our service for existing and future customers," said Al Shemtob, president of Barclay. "BISYS shares our operating philosophy and strategic goals, and we are pleased to be joining this leader in outsourcing services for financial organizations." The BISYS Group, Inc., is a leading national provider of information processing and loan services for banking institutions. Headquartered in Little Falls, The BISYS Group, Inc., and its subsidiary companies service over 500 financial institutions. -0- 6/30/93 /CONTACT: Lynn J. Mangum, chairman/chief executive officer, or Robert J. McMullan, senior vice president/chief financial officer of BISYS, 201-812-8600/ (BSYS EY)
CO: The BISYS Group, Inc.; The Barclay Group, Inc.; Ethyl Corporation ST: New Jersey, Pennsylvania IN: SU: TNM
GK -- NY073 -- 7640 07/01/93 10:58 EDT
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|Date:||Jul 1, 1993|
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