SAN FRANCISCO, Aug. 4 /PRNewswire/ -- In its first overseas acquisition,
BankServ, a leading financial services technology provider based here, has
taken over the TurboSwift(R) business of Netik, Plc, an information automation
company headquartered in London, England, BankServ reported today.
TurboSwift(R), a SWIFTNET-certified CBT, is believed to have the
second-largest SWIFT customer base in the world, according to BankServ. As a
result of the acquisition of this multi-million-dollar business, privately
held BankServ will add hundreds of new bank clients worldwide to its already
robust U.S. client list for which it moves billions of dollars electronically
each day. The company specializes in Automated Clearing House (ACH) and U. S.
dollar Fedwire money transfer services to banks, businesses, and governments.
(SWIFT is a worldwide community of more than 7,000 financial institutions in
198 countries connected to one another through the SWIFTNET network.
Collectively, these institutions -- active in payments, securities, treasury,
and trade services -- exchange millions of messages valued in trillions of
dollars every business day.)
Terms of the agreement were not disclosed. Only reported as an "all cash"
deal, BankServ said it was able to finance the acquisition without raising
equity and that it expects the acquisition to be cash-flow-positive in the
first year. The acquisition closed August 1st. It was approved by the boards
of directors of both companies.
BankServ said it will retain key personnel from TurboSwift(R) and will
maintain staff and an office in London while moving the headquarters of the
business to San Francisco. Mike Golds, who has been with TurboSwift(R) in the
United States for ten years, will continue to manage the company's strong
distributor network that provides software throughout the world. TurboSwift's
client base includes top-tier financial institutions around the world with
especially strong presence in Europe, the Middle East, and the former Soviet
countries. More recently TurboSwift(R) has been gaining ground in Latin
America, the United States, and Asia.
"Not only will this acquisition catapult BankServ on the global payments
scene for international bank customers," says Dave Kvederis, president and CEO
of BankServ, "but it will enhance our leadership in U. S. electronic funds
transfer processing by adding strong international payment capabilities to
those hundreds of U. S.- based financial institutions we already service." He
added that BankServ would soon provide a SWIFT service bureau product to its
U. S. customers modeled after its successful U. S. Fedwire service bureau.
"Our bank clients have developed great confidence in BankServ's ability to
operate outsource applications for the banks. I can't think of a more logical
extension of BankServ's Application Service Provider (ASP) services than to
include cross-border transaction processing," he said.
"Netik will remain a distributor of TurboSwift and the deal allows Netik
to focus on their core competency of delivering the InterView Investment Hub
product to the securities industry," said John Wise, CEO of Netik
Randy Gutierrez, general manager of BankServ's wire transfer business,
added that his company was "excited by the current direction of SWIFT and the
many initiatives underway to grow transaction volume by servicing global
financial institutions and their corporate customers. We believe BankServ's
experience and success with building unique products and delivery channels
will further strengthen SWIFT through application and volume growth leveraging
the "winning" global infrastructure they have created. Today's action indeed
heralds a new day for the company and its customers."
As a result of the acquisition, BankServ's TurboSwift(R) software product
will be marketed in both site license and service bureau formats.
TurboSwift(R) enables financial institutions to connect to the worldwide SWIFT
communications network for the purpose of transferring funds, perform
cross-border payments, and communicate about Foreign Exchange, Securities and
Letter of Credit transactions.
"One of the drivers of the acquisition," says Peter Hosokawa, BankServ
chief operating officer, is that BankServ and TurboSwift(R) have mutual
customers utilizing their solutions. The BankServ GFX system and TurboSwift(R)
were integrated more than a year ago and now are 'plug and play.' "We have
found the needs of our customers increasingly include tightly integrated SWIFT
processing for payments as well as functions such as foreign exchange
processing, trade services, and international securities processing. We have
solved that problem with the BankServ GFX and TurboSwift(R) offerings," he
BankServ is a leading U.S. provider of Fed wire transfer and ACH payment
solutions for banks, governments, higher education and businesses. BankServ's
recently introduced its ARCPay(R) product is receiving wide acceptance as a
means to convert mailed or drop box checks into ACH transactions. BankServ's
SameDayPay(R) product is an inexpensive and secure way for consumers to make
eCheck payments over the Internet or by phone even on the date that it is due.
BankServ provides outsourced Fed wire transfer processing to banks both large
and small and from coast-to-coast. More information on privately held
BankServ can be found on its Web site at www.bankserv.com.