DUBLIN, Ireland and DALLAS, Nov. 14, 2003 (PRIMEZONE) -- Trintech Group Plc (Nasdaq:TTPA (Prime Standard:TTP), a leading provider of transaction management and payment infrastructure solutions, today announced the acquisition of CW & Associates, Inc, trading as DataFlow Services, a private company, for a total consideration of approximately $5 million.
The consideration comprises initial cash consideration of $3 million, 150,000 American Depositary Shares (ADSs) issued from Trintech Treasury Shares, with an approximate value of $570,000, and a performance based earn out over two years, which is estimated at $1.5 million. Trintech expects that the transaction will be immediately accretive to both revenues and earnings excluding the impact of any amortization of the purchase price.
DataFlow, based in Dallas, provides a data delivery service supporting customer's bank reconciliation processes by aggregating bank account statement data and delivering it to customers daily in electronic form. The Company employs 39 staff and currently services approximately 90 customers of which 60 are also Trintech ReconNET customers.
Commenting on the acquisition, Cyril McGuire, CEO of Trintech said, "This acquisition of DataFlow is another step in Trintech's growth strategy in the funds and cash management 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. 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." "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."
This acquisition reinforces Trintech's commitment to the Funds Management System market, which is a key focus for growth in 2004. Further information on this acquisition will be given on Trintech's third quarter earnings call on November 26th, 2003.
About Trintech
Trintech is a leading provider of transaction management and payment infrastructure solutions to financial institutions, payment processors, enterprise retailers and network operators globally. Built on over 15 years of experience, Trintech's solutions manage each area of the payment transaction cycle from authentication, authorization, settlement, dispute resolution and reconciliation -- enabling our customers to reduce transactions costs, eliminate fraud, minimize risk, maximize cashflow and increase profitability. Trintech can be contacted in Ireland at Trintech Building, South County Business Park, Leopardstown, Dublin 18 (Tel: +353-1-207-4000), in the US at 15851 Dallas Parkway, Suite 855, Addison, TX 75001 (Tel: +1-972 701 9802), and in the UK at 186-192 Darkes Lane, Potters Bar, Hertfordshire, EN6 1AF (T: +44 (0) 1707 827000. www.trintech.com
This news release contains "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any "forward looking statements" in this press release are subject to certain risks and uncertainties that could cause actual results to differ materially from those stated. "Forward looking statements" in this press release include statements, among others, relating to Trintech's growth strategy in the funds and cash management market, the rate of growth of its statement delivery service, expected synergies and the effect of such synergies on it's business, the market presence of Trintech and DataFlow, the ability to scale the DataFlow business, and Trintech's expectation that this acquisition will be immediately accretive to revenues, and earnings excluding the impact of any amortization of the purchase price. Factors that could cause or contribute to such differences include Trintech's ability to successfully integrate the acquisition, reduce costs, consolidate locations, combine operations and eliminate redundancies in the combined organization and improve efficiencies through the acquisition, its ability to accurately predict its future sales and future sales of DataFlow, the long term health of Trintech's business and ability to improve performance of the organization, the ability of its customers to fulfill their commitments, the availability of financial resources to continue investment in research and development and sales and marketing programs, the growth of the market for funds management systems software and services and statement delivery services, Trintech's ability to develop, market and sell funds management systems software and services and statement delivery services, the ability to improve and expand the functionality of products, the ability to develop strategic relationships, the ability to react to technological or market change rapidly and the effects of macroeconomic uncertainty on the demand for Trintech's products. Actual performance may also be affected by other factors more fully discussed in Trintech's Form 6-K for the fiscal quarter ended July 31, 2003, filed with the US. Securities and Exchange Commission (www.sec.gov). Lastly, Trintech assumes no obligation to update these forward-looking statements.