Electronic Commerce: Internet Banking Software Firms Plan Merger: Intelidata, Home Financial Network See Advantages in Having an End-To- End Offering
Senior, Adriana, American Banker
Two companies in the on-line banking software market announced an agreement Monday to merge.
Intelidata Technologies Corp. and Home Financial Network Inc., which individually had struggled to gain prominence in a crowded field, said they would combine under the name Spherys.
Intelidata's back-end processing and middleware systems for home banking and bill payment would be added to Home Financial Network's front-end Internet banking software.
Spherys aims to market itself as an end-to-end systems source for financial institutions of all sizes, said Daniel M. Schley, chairman and chief executive officer of Westport, Conn.-based Home Financial.
Intelidata's stock, which has traded at extremely low prices in recent months, was unchanged Monday, at $4.0625 a share.
The deal would build upon an already strong relationship between the companies. Intelidata invested $5 million in Home Financial at its founding in 1995, giving it 25% ownership.
The question of merging with Intelidata had always been when, not if, Mr. Schley said. The two have "talked about it for years," he said.
They already share clients like Summit Bancorp of Princeton, N.J., Compass Bancshares of Birmingham, Ala., and BB&T Corp. of Winston-Salem, N.C.
Both vendors have undergone transformations in their relatively short lives.
Home Financial started by selling Home ATM software for personal computers, which was designed to be as simple and intuitive to learn as an automated teller machine.
Last September the privately held company introduced Total Web Banking, which includes Web design, Internet-based transactions, content to help a bank become a portal, and an integrated marketing system.
Virtually all of Home Financial's "approximately 15 clients" plan to adopt Total Web Banking, Mr. Schley said, though the company will continue to support and sell Home ATM to banks that want it.
Intelidata, which is nine years old and formerly known as U.S. Order, sold a telecommunications business last year to work exclusively on banking and bill payment software.
More than 20 financial institutions use its Interpose Transaction Engine or Interpose Payment Warehouse. …