AFA Systems, a provider of advanced software solutions for the banking and asset management industries, announced today that they have entered into a strategic business alliance with London Bridge Software , a supplier of customer interaction software to the retail financial sector. AFA says the strategic alliance came about because of the synergies that exist between the two companies with respect to their complementary product offerings to the banking sector and common objective to minimise development costs.
The alliance includes a Reseller Agreement and an Infrastructure Agreement.
The Reseller Agreement will enable London Bridge to sell AFA’s treasury and asset management solutions and is part of AFA’s strategy to increase its sales by widening its distribution channels. The Infrastructure Agreement will provide London Bridge with the opportunity to use AFA’s facilities and infrastructure to create its own low cost offshore development centre in South Africa. Under the terms of the agreement, AFA will facilitate the fast start and operation of the facility in Cape.
As an indication of its commitment to the alliance, London Bridge have agreed to acquire 8.2% of the enlarged issued share capital of AFA as part of a firm placing by AFA through which the company is expected to raise approximately 1.8m net of expenses at a price per share of 17 pence.
AFAchairman Mike Hart said: “I am very pleased to announce this alliance with London Bridge which is part of our overall plan to continue finding innovative ways to expand the distribution channels for our solutions. We are also delighted that at the same time as agreeing a mutually beneficial Alliance with AFA Systems, London Bridge, have elected to participate in the Placing of new shares that we recently announced.”
London Bridge Chairman Gordon Crawford said: “AFA has demonstrated the significant competitive advantage that it derives from its low cost offshore development capability. We are delighted to work with them to fast start our own offshore development facilities and develop fully integrated treasury and investment management modules for Phoenix.”