Under the terms of the agreement, Sanchez will acquire all shares of Spectra for approximately $26 million in cash and common stock and will assume approximately $2.2 million in net debt. Subject to Spectra shareholder approval and customary closing conditions, the transaction is expected to be completed near the end of the second quarter.

The move represents Sanchez's expansion into the global wealth management market. Frank Sanchez, chief executive officer, states: "We expect this transaction to fulfill our stated objective of offering the marketplace a comprehensive, integrated wealth management platform."

"Spectra's comprehensive line of wealth management products, proven management, technology expertise and roster of international clients are the perfect complements to the existing Sanchez solutions in global banking," says Sanchez.

Spectra is expected to contribute approximately $9 million in revenue to Sanchez during the second half of 2002. The Spectra forecast is also expected to contribute earnings before interest, tax, depreciation and amortisation (EBITDA) of approximately $2 million to Sanchez during 2002. On a consolidated basis, Sanchez management estimates 2002 revenues to range between $104 million and $112 million with an estimated fully diluted earnings per share range of $0.13 to $0.17. The company expects to pay for the acquisition by issuing up to 1.1 million shares with the remainder of the purchase funded by bank debt and cash.

Sanchez intends to use the customer and product integration platform contained in Sanchez Xpress to integrate Spectra's Wealthware products and Sanchez' Profile bank product and transaction processing engine and other Sanchez front-end products.