Concord's CoreLink acquires rival marketer Chandler/Burdt.

CoreLink Resources, a fledgling player in the business of marketing investment products through banks, has more than doubled its client base by purchasing rival Chandler/Burdt.

CoreLink, which is 50% owned by Concord Holding Corp., the big fund distributor, is pushing hard to tap the community bank market. With the acquisition, which was completed Wednesday, the company will have a client roster of 25 banks with average assets of $200 million.

The deal comes as some experts are predicing a wave of mergers among the scores of companies that supply banks with mutual funds, annuities, and related sales support.

|Fragmented Industry'

"I feel strongly this is a fragmented industry that allows for consolidation," said Richard Saalfeld, chairman of the Concord, Calif.-based CoreLink.

In the acquisition, whose terms were not disclosed, CoreLink will gain access to the 16 client banks of Chandler/Burdt, which is based in San Mateo, Calif. All the banks are community institutions in California, and all have indicated they will stay with CoreLink after the merger, Mr. Saalfeld said.

Many marketing firms have come to view community banks as the most promising market. That's because most big banks already have established their investment programs, either in partnership with a marketing firm or on their own.

Nine Banks Signed

In addition to the acquisition, CoreLink has been penetrating the market by signing up banks one by one. It has snared nine banks since its inception last spring.

To be sure, even after the acquisition the company will have a long way to go before it hits the major leagues.

CoreLink will have less than $50 million in sales this year, while Chandler/Burdt's will be around $100 million, officials at the companies said. By contrast, industry leaders like GNA Corp. and Invest Financial each notch more than $2 billion of sales through banks annually.

Mr. Saalfeld has not ruled out additional purchases or marketing companies as a way to expand CoreLink. The company is especially eager to grow beyond California, where all but one of its clients are based.

New York, Florida Markets

In fact, the company is taking on two of the nation's most competitive markets, Florida and New York, by adding two sales reps in these areas.

Though the price of the acquisition could not be learned, marketing firms typically sell for 1% to 1.5% of annual sales. That suggests a price of $1 million to $1.5 million for Chandler/Burdt.

The company, which began serving banks nearly five years ago, was never able to raise out push, said company chairman Michael Chandler.

Wider Distribution

On the other hand, CoreLink, located across San Francisco Bay from Chandler/Burdt, had the capital and the desire to speed up its entry into the community bank business.

CoreLink serves as a way for Concord Financial to expand distribution of its clients funds. Those products, however, are only part a much broader array of mutual funds and annuities offered by CoreLink.

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