US software company Sybase has agreed to acquire Home Financial Network (HFN), an Internet financial services company. It plans to merge HFN with its own software server unit, creating a new electronic financial services company.
Sybase will acquire privately-held HFN for a combination of cash and stock of shares, Sybase said in a statement.
The number of Sybase shares to be given to the owners of HFN is based on an agreed evaluation of the privately held company of $US130 million. Sybase has also agreed to provide the new company, which will be a wholly owned Sybase subsidiary, with $25 million additional capital, intellectual capital and other assets and some of its employees.
The agreement has been approved by both companies' Board of Directors, Sybase said, but still awaits regulatory approval.
Sybase could not be immediately reached for comment.
The new Sybase subsidiary will offer products and services for financial institutions and companies that want to deliver financial services to their customers over the Web, Sybase said. It will also supply software for business-to-business as well as business-to-consumer applications.
HFN specialises in helping companies develop Web sites for offering their customers financial services. Its products include the Total Web Financial System and Java-based Stage III Architecture. These will be combined with Sybase's own Financial Server unit, which mainly offers server software for large financial applications. Sybase's Financial Server 1.0, for example, help banks and financial services companies integrate and extend their online transactions.
The management team of the new company will include Daniel Schley, chairman and chief executive officer of HFN, Michon Schenck, vice president and general manager of Sybase's financial server unit, and Eric Jacobsen, president and chief operating officer of HFN.
The companies expect the deal to be completed by the end of December.