Magazine article American Banker

Sanchez's 'Open Secret' Deal with Citi Sends Stock Soaring

Magazine article American Banker

Sanchez's 'Open Secret' Deal with Citi Sends Stock Soaring

Article excerpt

Shares of Sanchez Computer Associates Inc. are soaring on word of a potentially far-reaching software deal with Citicorp.

Neither Sanchez, a provider of core banking software, nor Citicorp is commenting publicly on the pending deal, but the investment community calls it one of Wall Street's worst-kept secrets.

In the last month of trading, Sanchez shares have appreciated over 30% and were trading at $30 late Friday.

Since April, when the Malvern, Pa.-based company landed a contract with Citibank Canada, Sanchez stock has risen 540%.

"It seems like Sanchez is finally getting to a stage where it might be recognized as a prominent player in the bank technology sector," said Charles Wittman, analyst at Wheat First Butcher Singer, Richmond, Va. "The company has definitely had some strong momentum."

Sanchez's main product is Profile/Anyware, a multicurrency, core banking software system that processes loan, deposit, and other basic banking transactions. Sanchez counts as competitors Alltel Corp., Fiserv Inc., Marshall & Ilsley Corp., and Computer Sciences Corp.

Observers said the multicurrency features of the software would appeal to Citicorp because of the bank's extensive global retail presence.

The bulk of Sanchez's contracts have been signed with overseas banks. The company has focused on the international market because foreign financial institutions-particularly those in Eastern Europe and the Far East-have tended to be in greater need of new technology than U.S. banks.

Sanchez recently sold Profile/Anyware to Kredyt Bank PBI SA in Poland. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.