Metavante Corporation, the financial IT subsidiary of Marshall & Ilsley, has signed a definitive agreement to acquire Advanced Financial Solutions (AFS), an Oklahoma-based provider of cheque imaging technology.
AFS currently provides cheque imaging software to over 7000 financial institutions around the world.
The acquisition includes AFS affiliates CheckClear, which owns and operates Endpoint Exchange - the largest cheque image network in the US - and The Medical Banking Exchange, a healthcare payment-processing platform.
AFS currently employs 325 staff at its corporate headquarters and at an engineering campus in Norman. Metavante says existing management will continuing in their positions following the acquisition.
Frank Martire, Metavante president and CEO, says: "Adding AFS' cheque-imaging technology and Endpoint Exchange network to our existing payment technologies, which include electronic presentment and payment, ACH processing, electronic funds transfer and a debit card technology, we will have the components needed to continue building out the Metavante Payment Services Network."
Metavante announced last month it was buying Kirchman Corporation, a Florida-based provider of automation software and compliance services to the banking sector. The aggregate cash purchase price for both the Kirchman and AFS transactions is approximately $305 million, subject to an additional earn out in the AFS transaction based on future financial results. Upon completion, the transactions are expected to result in intangible assets, including goodwill, of approximately $290 million in the aggregate.
Both transactions are expected to close in the second quarter.