The Next Step: CheckFree to acquire Corillian for $245m
Big news over here at my company, Corillian. We're being purchased by CheckFree. This is pretty exciting from a technology company, with the challenge being to combine the software services of two companies.
I'm not a business person, nor is this blog about business, so I'll leave the analysis to the analysts. But from a technology perspective this is a very cool opportunity to combine and integrate the world's (IMHO) leading Banking Platform with the world's leading BillPay Platform. I'm stoked for the future.
CheckFree Announces Agreement to Acquire Corillian Corporation
Combination Will Enhance Online Banking, Billing and Payment Experience for Consumers and Small Businesses, and Deliver Greater Flexibility for Financial Institutions
ATLANTA and PORTLAND, Ore., Feb 14, 2007 /PRNewswire-FirstCall via COMTEX News Network/ -- CheckFree Corporation (Nasdaq: CKFR) today announced it has entered into a definitive agreement to purchase Corillian Corporation (Nasdaq: CORI), the leading provider of Internet banking software and services. Under the terms of the agreement, CheckFree will acquire all of the outstanding shares of Corillian at a price of $5.15 per share, for a total purchase price of approximately $245 million on a fully diluted basis.
The acquisition will bring together Corillian's widely used online banking platform and complementary suite of financial applications, and CheckFree's industry-leading electronic billing and payment and online transaction services, which include unparalleled electronic billing content and a highly efficient infrastructure that connects banks, billers and millions of consumers. Together, CheckFree and Corillian will be well-positioned to help financial institutions optimize the online channel and drive increased usage of electronic billing and payment.
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Corillian supports more than 30 of the top 100 U.S. banks and 21 of the top 100 U.S. credit unions with its online financial services strategy. CheckFree processes more than one billion transactions annually and distributes more than 18 million e-bills per month through more than 2,000 financial services sites.
The proposed acquisition is subject to regulatory review, Corillian shareholder approval, and other customary closing conditions, and is expected to close on or about June 1, 2007. CheckFree will finance the transaction with a combination of existing cash balances and revolving debt, although there are no financing contingencies in the merger agreement. CheckFree expects the transaction to be dilutive to CheckFree's GAAP earnings per share in the current fiscal year (ending June 30, 2007) and in 2008, and modestly dilutive to underlying earnings per share in the current fiscal year and in fiscal 2008. The company plans to share specific financial details when the transaction closes.
CheckFree will broadcast a conference call at 11 a.m. EST today to discuss the agreement. Participants should dial 1-877-232-1067 any time after 10:45 a.m. EST and ask for the CheckFree conference call. The live conference call will be accessible through the Investor Center section of the CheckFree website at http://www.checkfreecorp.com. A digital replay of the call will be available on the CheckFree website after 1 p.m. EST.
The Next Step begins...wish us all luck!