Bank technology stocks mostly gained ground last week, despite an big market selloff on Friday.
While stocks rose through most of the week, the Dow Jones industrial average fell more than 34 points Friday as bond prices deteriorated and the U.S. dollar continued its decline against the German mark.
Shares of technology companies that serve banks remained mostly higher for the week, particularly outsourcing and payment systems firms. First Data Corp. saw its stock rise after its agreement to purchase New Valley Corp.'s Western Union Financial Services unit was bested by buyout firm Forstmann Little & Co.
New Valley's board accepted Forstmann's offer of $650 million plus the assumption of Western Union's unfunded pension liabilities, which are estimated to be between $260 million and $400 million.
First Data had offered $595 million and the assumption of the pension liabilities for the Western Union money transfer business. First Data will receive $25 million from New Valley in order to void the agreement.
First Data also announced Thursday it has signed a letter of intent with Mobil Oil Credit Corp. to provide proprietary credit card processing services for the gasoline retailer. First Data's stock closed at $45.375 a share Friday, up 25 cents for the week.
CFI Buys Competitor
Consumer lending and compliance software company CFI ProServices announced last week it had acquired a competitor, the software and forms products division of Professional Bank Services, based in Louisville, Ky. Financial terms were not disclosed.
Professional Bank Services main line of business is in education and consulting services to banks. Company officials said they decided to sell the software division to CFI in order to concentrate on its consulting practice.
"Devoting significant resources to the development of new software products and maintaining existing ones would require us to divert resources and attention from our core business areas," said George Freibart, president and chief executive officer of Professional Bank Services.
Software Unit Opened
As a result of the acquisition, CFI officials said they have opened a new software products and forms division in Louisville staffed by former Professional Bank Services employees.
"This deal enables us to partner with a company that has an extraordinarily fine reputation," said Matt Chapman, CFI Pro-Services' chairman and chief executive. "Our two companies will now have a large number of common customers, so maintaining a close, positive relation ship is important to us."
CFI will continue to support a loan origination software package developed by Professional Bank Services, company offi cials said, adding that the acquired company's 400 customers will be given "special pricing considerations" to convert to CFI software.
CFI ProServices' stock closed at $15 a share Friday, up $1.75 for the week.
