Glastonbury, Conn. - Open Solutions Inc., a provider of integrated, enterprisewide data processing technologies for banks and credit unions, today announced that it has completed its acquisition of the Information Services group of New Jersey-based The BISYS Group Inc., a provider of outsourced solutions to investment firms, insurance companies and banks.Open Solutions believes that this transaction will enable it to expand its product offerings, further increase its presence in the financial services marketplace and extend its client base to include the healthcare, insurance and corporate finance industries. Under terms of the completed agreement, Open Solutions purchased the Information Services group for a total cash consideration of approximately $470 million, subject to adjustment.
The Information Services group provides information processing, imaging and back-office services to banks, insurance companies and corporate clients. The group consists of banking solutions, which provides outsourced information processing for approximately 220 large and community banks (through its TotalPlus core platform offering or through Open Solutions' relational core technology TotalCS via a strategic partnership); corporate financial solutions, which provides outsourced information processing in the areas of asset retention, corporate banking, healthcare savings, and insured deposit services for more than 100 insurance companies and major corporations; and document solutions, which is one of the industry's largest providers of check imaging and Check 21 technologies, serving approximately 400 financial institutions.
Information Services operates from its offices in Cherry Hill, N.J., Houston, Lombard, Ill., Cincinnati, Rockland, Mass., and Birmingham, Ala.
BISYS has been a strategic reseller and alliance partner of Open Solutions since 1997 when BISYS Information Services first partnered with Open Solutions to offer Open Solutions' relational core data processing technology as an outsourced data processing alternative. The partnership had grown and expanded through the years to include access to Open Solutions' full suite of complementary products and services.
Both organizations have enjoyed an excellent working relationship as they sought to better address the growing demand in the market for Open Solutions' technology offerings. The completion of this acquisition represents the natural progression of this relationship, according to the companies. The combined client base will benefit from the availability of even more choices in terms of open, industry-focused technology solutions and additional product offerings and services.
"We are very pleased to announce the completion of this acquisition and delighted to welcome both the employees of BISYS Information Services and their clients into the Open Solutions family," says Louis Hernandez, Jr., chairman and CEO of Open Solutions. "We look forward to working closely together to further expand upon our company's market presence and reach within the financial services industry. Information Services brings to us an ongoing and already established working relationship, with a similar industry focus, market vision, industry-skilled employee base and a desire to proactively serve the needs of its clients and the marketplace. Together, our organizations are fully committed to our ongoing efforts to offer industry-focused and innovative solutions designed to enable our clients to better compete and to provide superior products and services to their marketplaces."
Russ Fradin, BISYS president and CEO, states, "Open Solutions has earned an excellent reputation in the financial services arena of providing focused technology solutions combined with outstanding client service. As a result, we are pleased that we have finalized this agreement with Open Solutions and we believe that Information Services clients will be well served in the years ahead and that our associates are joining a world-class organization."
Open Solutions intends to leverage and blend each organization's strengths and experience to further expand into the overall financial services marketplace while continuing to serve the unique needs of both the banking and credit union industries.
Sources: The BISYS Group Inc., Open Solutions Inc.
