Checkfree-Carreker Corp. Acquisition- $206M

CheckFree plans $206M acquisition

Electronic commerce provider CheckFree Corp. said it will buy Carreker Corp. of Dallas in a $206 million deal to broaden CheckFree's payment services business.Carreker (NASDAQ: CANI - News) provides payments technology and consulting services for the financial services industry. The company has more than 250 clients in the United States, United Kingdom, Ireland, Continental Europe, South America, and Australia. It reported revenues of $116.6 million in fiscal 2005, which ended Jan. 31, 2006.The company had been reviewing its strategic alternatives for the past year.Atlanta-based CheckFree (Nasdaq: CKFR - News) said the deal will expand its presence in payments processing. It will also become a leading provider of services and expert consultancy for the convergence of check and electronic payments.The proposed acquisition combines CheckFree's abilities in payments processing with Carreker's abilities in check conversion -- the ability to capture and process a digital image of a paper check. As a result, the companies said, the combined organization will be able to convert paper checks into electronic items at the earliest possible points in the payments process -- whether at the bank branch, corporate back office or lockbox."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," said 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."CheckFree will acquire all of the outstanding shares of Carreker common stock for $8.05 per share. The shares closed Dec. 29 at $7.64.source and published by Atlanta Business Chronicle