Irish electronic payments player Trintech has acquired a private US company specialising in technology that supports regulatory compliance such as Sarbanes-Oxley for up to US$5m. Trintech also reported a drop in revenue from US$15.1m to US$11.5m for the fourth quarter due to hardware technical issues.
Nadaq-listed Trintech reported a profit of US$2.1m for the quarter. It said that the fall in revenue was driven by lower product revenues. It said that the technical issues with certain hardware products have now been resolved.
For the fiscal year Trintech reported that revenue decreased 13pc to US$48.6m, compared with US$55.8m the previous year. It reported a loss of US$1.5m for the year.
In terms of the company’s acquisition of Kansas-based Assurity Technologies, the US$5m price comprises a US$2m initial cash consideration plus a performance-based earn out over three years of between US$2m and US$3m.
Assurity provides an enterprise process management system for general ledger account reconciliation, review and certification. The product, AssureNET, is designed to increase work flow efficiencies and mitigate risk by strengthening internal controls to support Sarbanes-Oxley compliance programs.
The company was established in 2004 and employs seven staff and serves six customers. In 2005, Trintech formed a strategic partnership with Assurity.
Trintech CEO Cyril McGuire commented: “This acquisition of Assurity Technologies is another step in Trintech’s growth strategy in the reconciliation and risk management market.
“It will allow us to accelerate the growth of our flagship product ReconNET into new markets, which is an important component in the execution of our strategic plan for this business,” McGuire said.
By John Kennedy