TORONTO Davis + Henderson Corp. has agreed to acquire Harland Financial Solutions, a leading provider of back-office solutions for credit unions, for $1.2 billion U.S. in cash.
D+H, which acquired Mortgagebot and Avista Solutions in 2011, serves 5,4000 credit unions and banks in North America.
Lake Mary, Fla.-based Harland Financial is owned by MacAndrews & Forbes, the holding company for billionaire investor Ronald Perelman, and was once part of John H. Harland Co., before Perelman split it off.
Harland Financial’s lending solutions platform includes LaserPro, a leading automated loan compliance solution in the U.S. D+H's lending solution platform includes market-leading Mortgagebot Point of Sale and Loan Origination Systems . By combining these suites, D+H will have a substantial portfolio of solutions to cross-sell to credit unions and banks.
Harland Financial also commands the number four U.S. market position in core technology, a segment that D+H does not address with its current solutions. Through its PhoenixEFE technology , the company supports mission-critical activities including customer account openings, payment processing, deposit account balancing and interest-rate calculations, and the management of commercial, consumer and mortgage loans.
D+H is acquiring 100% of HFS from its parent company, Harland Clarke Holdings Corp., at a purchase price of US$1.2 billion. Harland Clarke is owned by MacAndrews & Forbes, which is wholly owned by Perelman.
Harland Financial’s adjusted revenue was $296.8 million and $287.2 million for fiscal 2012 and 2011, respectively.
Closing of the acquisition is subject to approval under the Hart-Scott-Rodino Antitrust Act and is expected to occur on or about August 19, 2013.
