Siebel snaps up Eontec

Trade

US CRM software firm Siebel Systems has bought Dublin-based banking software company Eontec for USD130m in one of the largest ever sales of an Irish software firm. The acquisition, which will expand Siebel’s range to include branch teller and Internet
banking systems, is likely to result in large gains to investors and shareholders in the company, who include founder Jim Callan and Denis O’Brien.

Under the terms of the deal, $70 million in cash will initially be paid to Eontec shareholders, and up to an additional $60 million in cash, with a target of $30 million, may be paid in earn-out payments during 2005 based on achieving revenue and contractual milestones.
All Eontec employees will become members of Siebel’s Retail Finance division, which will be headed by Patrick Brazel, Eontec’s current CEO. 

There will be no layoffs as a result of the sale.  Siebel Systems, based in California, is a Nasdaq-quoted firm established in 1993 that had a turnover in 2003 of $1.35bn.
‘With Siebel Systems’ complete retail banking solution, enhanced by Eontec technology, banks can replace branch applications and infrastructure that have not been updated during the recent expansion into alternative channels such as the Internet, call centre, and ATM,’ said Brazel. ‘Together, Siebel Systems and Eontec will change the game by delivering the world’s only comprehensive multichannel banking solution that meets the
needs of financial institutions of all sizes worldwide.’

Thomas M. Siebel, chairman and CEO of Siebel Systems said the combination would benefit the retail banking industry and its customers. Eontec’s technology is based on an industry-standard J2EE application server platform that enable banks to provide services uniformly across multiple channels. The acquisition was welcomed by IBM, which works with both Siebel and Eontec.  ‘IBM is pleased that two of our leading partners have combined their strengths to provide the market’s only next-generation solution for retail banks,” said Mark Greene, general manager, IBM Global Banking Industry.

‘Banks around the world have standardised on IBM’s WebSphere, and this represents a great opportunity for them to pair their
WebSphere-based multichannel strategies with the only retail banking solution that combines financial transaction, CRM, and business intelligence capabilities.’

Other Eontec partners include Intel, HP, Sun Microsystems, EDS and Bearing Point.

10/05/04

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