0 Comments
ATLANTA - CheckFree Corp. is expected to buy Dallas-based Carreker Corp. by the end of March. The deal between the two companies, according to CheckFree, will help CheckFree expand its software business and consulting expertise for the financial industry, expanding its presence in payments processing and risk management for ACH, check and cash.
 
"This combination will enable financial institutions and corporations to address a range of challenges, from payments convergence and more complex client requirements, to the need for operational efficiency gains and regulatory compliance," said Pete Kight, CheckFree's chairman and chief executive.
 
The company says it also expects to become a leading provider of solutions and consultation for the convergence of check and electronic payments.
 
According to a news release, CheckFree will acquire all outstanding shares of Carreker common stock for $8.05 per share. The total purchase price is approximately $206 million.
 
Carreker has more than 250 clients in the United States, United Kingdom, Ireland, continental Europe, South America and Australia. Carreker reported revenue of $116.6 million for fiscal year 2005/2006, which ended Jan. 31, 2006.
 
"This is great news for Carreker," said Bob Meara, a senior analyst for Boston-based financial research and consulting firm Celent LLC. "This once powerful vendor to large banks has been unsuccessful in riding the Check 21 spending wave. CheckFree brings highly complementary products - particularly in ACH processing systems where it reigns supreme among large banks. Together, CheckFree and Carreker will have an unrivaled installed base."
 
But Meara says CheckFree will have to be diligent about moving its existing and new clients over to modern payment platforms.  
 
"The challenge for CheckFree going forward, however, will be to move clients off dated mainframe-based systems onto modern payments platforms - something neither company has been particularly adept at in recent years."
 

Related Content

Reader Comments

Add a Comment

We welcome your thoughtful comments. All comments will display your real name.

Want to participate in the discussion?

Or log in for complete access.

  • Clear
  • Post
Be the first to post a comment for this story.
Products & Services

Cryptera EPP 2200

http://global.networldalliance.com/new/images/products/4083.png

4083/Cryptera-EPP-2200

Webway Terminal

http://global.networldalliance.com/new/images/products/Itautec_WebWay.gif

738/Webway-Terminal

Prepaid Media, Premiums & Incentives Dispensed via Enabled ATMs

http://global.networldalliance.com/new/images/products/ATM_Dispensing_Card_100.gif

910/Prepaid-Media-Premiums-Incentives-Dispensed-via-Enabled-ATMs

Card Readers- New and remanufactured to OEM Specification

http://global.networldalliance.com/new/images/products/446.png

446/Card-Readers-New-and-remanufactured-to-OEM-Specification

OptiCa$h

http://global.networldalliance.com/new/images/products/Optilcash_logo100.jpg

556/OptiCa-h

Cash Forecasting

http://global.networldalliance.com/new/images/products/CashFlow_100.gif

645/Cash-Forecasting

Monofunctional ATM - ProCash 1500xe

http://global.networldalliance.com/new/images/products/ProCash1500_sm.jpg

166/Monofunctional-ATM-ProCash-1500xe

North America Style's design PCI 2.x EPP -ZT588F

http://global.networldalliance.com/new/images/products/4499.png

4499/North-America-Style-s-design-PCI-2-x-EPP-ZT588F

Agilis® Software

http://global.networldalliance.com/new/images/products/4431.png

4431/Agilis-Software

Cash Recycling ATM - ProCash 3100

http://global.networldalliance.com/new/images/products/ProCash3100_sm.jpg

163/Cash-Recycling-ATM-ProCash-3100

OptConnect
Request Information From Suppliers
Save time looking for suppliers. Complete this form to submit a Request for Information to our entire network of partners.