Metavante Corporation acquires GHR Systems.
Metavante, the financial technology subsidiary of Marshall & Ilsley Corporation, said it would spend $65 million--of which approximately $55 million will be funded using Marshall & Ilsley Corporate stock--to acquire GHR from its three founders and other investors.
GHR's management team, led by Cyrus Brinn and Allan Redstone, will continue operating the business as GHR Systems, while becoming part of the Metavante Financial Solutions Group headed by Paul Danola, president and chief operating officer, Metavante Financial Solutions Group.
"GHR will be a successful company by itself if we left it alone inside Metavante," Danola told Mortgage Banking. "But we believe this is a good cross-sell opportunity to leverage the Metavante relationships we already have with financial institutions to help the growth of the GHR business itself, and therefore [the growth] of Metavante."
Prior to the acquisition, Metavante had been a partial owner of GHR since November 2000 when Metavante purchased approximately 5 percent of the company.
The collaboration with Metavante will allow GHR the opportunity to take advantage of the larger companies' additional resources, which in turn will permit GHR to accelerate its product development, said Brinn.
"We believe because the market is still fragmented in the lending automation space, there are some great opportunities to fold in other products and companies to deliver more value to our customers and create greater enterprise value as well," he said.
GHR Systems represents the latest of four acquisitions by Metavante so far this year. Just days prior to the GHR deal, Metavante announced the acqusition of TREEV LLC, a Herndon, Virginia-based provider of financial software and consulting for $19.5 million.
The GHR and TREEV deals, as well as other acquisitions, far from being a "shopping spree," are instead a "purposeful strategy" to build Metavante's stable of services, said Danola.
"As we see and identify other areas and as other opportunities come by that will drive value to the Metavante client base or support the Metavante strategy, both on payments and on financial services processing, we'll look at those opportunities," he said.
Metavante's purchase of GHR, which is due to close in the third quarter, is not expected to have a material impact on Marshall & Ilsley's financial results, according to the company.
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|Date:||Aug 1, 2005|
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