CheckFree Corporation has entered into an agreement to purchase Carreker Corporation, expanding its software business and payment applications geared toward the financial industry. CheckFree will acquire all of Carreker’s outstanding shares of common stock at $8.05 per share or for a total purchase price of $206 million.
“This combination will enable financial institutions and corporations to address a range of challenges, from payments convergence and more complex client requirements, to the need for operational efficiency gains and regulatory compliance,” says Pete Kight, CheckFree’s chairman and CEO. “In addition, the newly expanded Software unit will have the necessary economies of scale to innovate and support the dramatic transformations underway in financial services.”
“This proposed acquisition is the positive outcome of the strategic alternatives review process that has been underway at Carreker for the past year,” says John D. Carreker, chairman and CEO of Carreker. “Combining our businesses will maximize value for Carreker shareholders while creating a leader in payments processing and risk management capabilities in ACH, check and cash.” The combined organization will be able to convert paper checks into electronic items by capturing and processing a digital image of the check. Also, the new organization will serve most of the top 100 US banks.
The acquisition is expected to close by 31 March, 2007.