Open Solutions Acquires re:Member Data Services In $20-million Cash Deal
Open Solutions Inc., a provider of integrated data processing technologies for banks and credit unions, has acquired Indianapolis-based re:Member Data Services, Inc. (RDS), a provider of core processing solutions for credit unions.
The $20-million cash acquisition will make RDS part of OSI's Core Systems Group and will continue to operate out of the facility in Indianapolis.
RDS CEO David Becker, who is leaving to pursue other interests, will assist with the transition and will remain an RDS client in his capacity as CEO of First Internet Bank of Indiana.
For the fiscal year ended March 31, RDS reported revenue of approximately $13 million.
"Open Solutions and RDS share a common commitment to providing the credit union marketplace with innovative products and services," said Gary Daniel, senior vice president and general manager of OSI's Credit Union Group. "RDS also shares Open Solutions' viewpoint on the importance of client service and offering industry focused solutions. To complement this shared vision and business philosophy, RDS clients will now have access to Open Solutions' open relational core data processing technology and suite of complementary integrated strategic solutions."
"RDS has made an ongoing commitment to our clients to provide them with an optional upgrade path to an open flexible relational core technology platform along with additional expanded features and performance," said Becker. "Joining the Open Solutions organization follows this promise by enabling RDS to leverage Open Solutions' technology and make this commitment a reality today."
Open Solutions said the acquisition will allow it to leverage each company's strengths and experience to develop additional product offerings, new technologies and applications.
"We are very pleased to be welcoming the employees and clients of RDS into the Open Solutions family," said OSI CEO Louis Hernandez, Jr. "Our two organizations share a similar entrepreneurial and solutions-oriented business philosophy and corporate culture that is combined with a true commitment to serving the ongoing needs of the financial services industry. As has been our ongoing strategy, Open Solutions is using proceeds from our recent public offerings to expand our industry presence and round out our product offerings through acquisitions that add value to our company, clients and the marketplace. We believe that the acquisition of RDS is a natural fit into our organization."