Acquisition Expands Bottomline’s Capabilities for Banks and Corporate Customers
PORTSMOUTH, N.H. – Feb. 22, 2011 – Bottomline Technologies (NASDAQ: EPAY), a leading provider of collaborative payment, invoice and document automation solutions, today announced the acquisition of Direct Debit Limited (DDL), a London-based provider of payments automation software for direct debits and receivables management for corporations, banks, financial institutions and government organizations.
The addition of DDL extends Bottomline’s global payments capabilities. By improving inbound cash flow and reducing days sales outstanding, customers enjoy lower financing costs and improved working capital management. Customers can access the solutions online using a Software as a Service (SaaS) model, or can deploy the solutions on-site.
The acquisition of DDL expands Bottomline’s transaction banking portfolio and allows banks to offer white-labeled receivables management solutions to their corporate customers. Bottomline helps banks differentiate their portfolio by offering transaction banking solutions to their customers, thereby enhancing relationships, driving transaction revenues and increasing profitability.
“We welcome DDL’s clients to Bottomline and look forward to demonstrating our commitment to their continued success,” said Rob Eberle, president and CEO of Bottomline Technologies. “The addition of Direct Debit’s solutions is an important and valuable extension of our suite of global payments, invoicing and transaction banking solutions, offering corporations and financial institutions powerful technology that is flexible and easy to use.”
DDL provides payments and receivables automation solutions to some of the world’s leading enterprises. This transaction expands Bottomline’s relationships with major banks, including HSBC and RBS, and corporations such as The Associated Press, Cadbury Schweppes, L’Oréal and Manchester United. The combination also extends Bottomline’s existing relationships with Vocalink and Bacs.
“The DDL team is thrilled to be part of Bottomline,” said Gerry Hill, managing director of Direct Debit Limited. “We’re certain that Bottomline will continue to focus on the success of our customers and trading partners, and deliver further value with an enhanced portfolio of payment, receivables and transaction banking solutions.”
In addition, today Bottomline also announced it has purchased the principal assets of Business Information Technology Group(BITG), a leading Australia-based Bottomline distributor and channel partner focused on the corporate market. As part of the transaction, six employees from BITG will join Bottomline.
Bottomline expects the acquisitions to contribute approximately $500,000 and $1 million of revenue in the third and fourth quarters respectively and be dilutive by approximately 2¢ in both the third and fourth quarters, principally due to the impact of the accounting treatment of acquired deferred revenue. The transactions are projected to be accretive to core net income in fiscal 2012 and beyond.
About Bottomline Technologies
Bottomline Technologies (NASDAQ: EPAY) provides collaborative payment, invoice and document automation solutions to corporations, financial institutions and banks around the world. The company’s solutions are used to streamline, automate and manage processes involving payments, invoicing, global cash management, supply chain finance and transactional documents. Organizations trust these solutions to meet their needs for cost reduction, competitive differentiation and optimization of working capital. Headquartered in the United States, Bottomline also maintains offices in Europe and Asia-Pacific. For more information, visit www.bottomline.com.