CheckFree: Yearlong String of Deals Goes On
By Peralte C. Paul, The Atlanta Journal-Constitution
Jan. 3–In little more than a year, CheckFree Corp. has spent nearly $200 million on companies the Norcross-based financial services technology firm saw as strategic fits with its long-term growth plans.
That shopping spree seriously expanded on Tuesday.
CheckFree, which provides the technology to banks that allows their customers to pay bills without writing checks and conduct other online transactions, said it is buying Dallas-based Carreker Corp. for $206 million after five months of negotiations.
Carreker’s specialty — software that helps banks convert paper checks for electronic deposits by corporate customers — was very attractive, said Randy McCoy, CheckFree’s executive vice president and chief technology officer.
“CheckFree is a leader in the electronic billing and payments; Carreker is in a similar business, but it’s not the same as us,” McCoy said. “It helps us expand the software business, and it expands our leadership in the paperless solutions space… It will also put us in a position for faster innovation.”
The deal, expected to close March 31, calls for CheckFree to acquire all of Carreker’s outstanding stock for $8.05 per share.
Should the transaction meet shareholder and regulatory approval, CheckFree’s software division would account for 20 percent of annual revenue, up from its current 12 percent, the company said.
Carreker, which has about 500 employees, is based in Dallas and operates offices in Memphis, Charlotte, London and Sydney, Australia.
Those employees would likely stay where they are, McCoy said. CheckFree has about 3,500 employees.
CheckFree reported profits of $31.4 million, or 34 cents per share, in its most recent quarterly earnings. It serves 19 of the top 25 financial institutions.
With such marquee banking clients as Bank of America Corp., SunTrust Banks and Wachovia Corp., CheckFree has long sought ways to make complementary additions to its core business.
The acquisitions over the past year included a company that allows bill payment through telephone and the Internet, a health club management software and services firm, and a British operational risk company.
The firm continues to look for buyouts where and when they make sense, McCoy said.
“We look at 100 a year at least,” he said.
“We’re always looking for ways to expand the business and help out our customers as much as we can.”
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