Alltel Corp. has agreed to acquire Advanced Information Resources Ltd., a privately held provider of commercial loan software.
The deal, which an Alltel spokesman said is valued at $50 million to $100 million, would enhance Alltel's extensive loan-support capabilities.
Little Rock-based Alltel is the largest servicer of mortgage loans, through a Jacksonville, Fla., facility. And in March the company increased its capabilities in processing consumer loan originations by acquiring Atlanta-based Corporate Solutions International.
Alltel aims to provide "end-to-end" solutions for consumer and commercial lending, said Jeff Fox, president of Alltel Information Services, which serves the banking industry.
The company intends to market Advanced Information's software, which is installed at 32 banks worldwide, to large global financial institutions, Mr. Fox said. It also will continue to sell and support its current mainframe-based CL commercial lending software.
Advanced Information's support for multiple currencies was a big factor in Alltel's decision to approach the company, Mr. Fox said. "We're not just a domestic player," he said. "We spent millions making our retail platform multicurrency."
Don Cooksey, president and chief executive officer of San Diego-based Advanced Information, said the agreement with Alltel would help meet customer requests for services such as outsourcing and consulting.
With customers in 54 countries, Alltel also "provides a large distribution channel" for Advanced Information, which currently does business in about eight countries, Mr. Cooksey said.
Advanced Information's Advanced Commercial Banking System handles originations, primary syndications, servicing, and trading of commercial loans. Built on International Business Machine Corp.'s AS/400 platform, it is now available on Microsoft's Windows NT operating system.
The software is installed at major banks including State Street Bank and Trust Co., Chase Manhattan Corp., Fuji Bank of Tokyo, Credit Lyonnais of Paris, and Canadian Imperial Bank of Commerce, Toronto.
Advanced Information's 200-plus employees would become Alltel staff members but remain in San Diego.