August 16, 2013

Davis + Henderson completes acquisition of Harland Financial Solutions

TORONTO--Davis + Henderson Corporation has completed the US$1.2 billion acquisition of Harland Financial Solutions, a leading U.S.-based provider of strategic technology, including lending and compliance, core banking, and channel management technology solutions.

With the Acquisition, D+H improves its competitive position by expanding its value-added suite of financial technology products for banks and credit unions and accelerates its strategy of being a leading North American FinTech provider. The complementary nature of D+H's combined offering is expected to fuel product cross-selling synergies and new revenue opportunities by providing existing and new clients with a more powerful solutions set that they can use to grow, compete, meet compliance requirements and drive operational effectiveness. Inclusive of HFS, D+H now serves approximately 6,200 customers in North America and achieves greater revenue diversification by geography and service line.

The all-cash transaction was funded by way of a bought deal prospectus offering of subscription receipts and 6.00% extendible convertible unsecured subordinated debentures for gross proceeds of $690.2 million and from borrowings under a new committed credit facility. The stock purchase agreement pertaining to the Acquisition was signed and announced on July 23, 2013 and was subject to customary closing conditions, including approval under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 in the United States.

"The enthusiastic support received in the capital markets and in our client markets since we announced the transaction is much appreciated and reflects the clear value creation potential of this transformational acquisition," said Gerrard Schmid, CEO of D+H. "We look forward to using our complementary technologies and expanded capabilities to meet the broader needs of our combined client base of 6,200 and to forge an even stronger value proposition for the future as we concentrate on growing our presence among the 13,000 banks and credit unions who form our available market."

D+H is a leading provider of secure and reliable technology solutions to North American financial institutions with a reputation for being a trusted partner that helps clients build deeper, more profitable relationships with their customers based on rich industry and market insight, and consumer knowledge. Banks and credit unions across North America rely on D+H to deliver solutions across three broad service areas: Banking and Lending Technology, Lending Processing Solutions, and Payments Solutions. Our integrated, compliant technology solutions enable clients to grow, compete, and optimize their operations, while our forward looking approach helps them stay ahead of the market and anticipate changing consumer needs.

The acquisition of HFS, and its complementary product suite, will enhance D+H's position as a North American FinTech provider, increase our current client base to approximately 6,200 banks and credit unions, expand our capabilities as a leader in lending and compliance solutions, core banking technology solutions and channel solutions, create significant cross-selling and revenue synergies, improve diversification and provide further support for our growth strategies.

In 2012, D+H rose to 35th on the FinTech 100, a ranking of the top technology providers to the global financial services industry, and is ranked 24th on the 2013 Branham 300, a listing of the top Canadian ICT companies.

 

 

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