Trintech does Dallas with DataFlow acquisition

14 Nov 2003

Irish e-payments firm Trintech has bought the privately owned US firm DataFlow Services in a cash and stock deal worth US$5m.

Dallas-based DataFlow provides a data delivery service that supports customers’ bank reconciliation processes by aggregating bank account statement data and delivering it to customers daily in electronic form.

DataFlow employs 39 people and currently serves 90 customers of which 60 are also Trintech’s reconciliation product customers.

The deal comprises an initial cash consideration of US$3m plus 150,000 Trintech Treasury Shares worth US$570,000 and a performance-based earn-out over two years, which is estimated at US$1.5m.

Trintech expects that the transaction will be immediately accretive to both revenues and earnings excluding the impact of any amortisation of the purchase price.

Trintech CEO Cyril McGuire said the acquisition is a key element in its growth strategy for 2004 and reinforces the company’s commitment to the funds management systems market.

“It will allow us to accelerate the growth of our recently launched statement delivery service, which is an important component in the execution of our strategic plan for this business,” he said.

“This acquisition should be synergistic as it should result in improved market position with both Trintech and Dataflow customers benefiting from our combined areas of expertise and product set,” McGuire added.

“We are confident that as part of Trintech, we can provide the best combination of service, expertise and value to our customers and partners,” said Jeff Wiggins, president of Dataflow Services. “Trintech’s reach, sales and marketing expertise and reputation for secure reliable performance and quality service is the ideal partner platform to scale the business to the next level of growth.”

Nasdaq-listed Trintech is due to report its third quarter earnings on 26 November.

By John Kennedy