BankServ, which provides remote deposit capture technology to banks, announced Tuesday an agreement to buy most of the assets of competitor NetDeposit LLC from Zions Bancorporation.
The deal will double the number of BankServ's end-users and create the largest independent processor of remote deposit transactions in the country, the Las Vegas company said.
The two companies explored a merger a few years ago but their discussions never led to anywhere, David Kvederis, BankServ's president and chief executive, said in an interview. They began talking again about a potential combination earlier this year, when executives from the companies saw areas where each company's products could fill in gaps for the other, he said.
"We started to compare the product lines," Kvederis said. "After we got into it, it turned out the places where we had weaknesses they had real strengths and vice versa."
For example, NetDeposit has established technology for truncating checks at the branch while BankServ does not, he said, while BankServ is known for its accounts-receivable processing, which was an area NetDeposit is lacking.
The combined company will have annual revenue of between $50 million and $100 million, according to Kvederis. It's products will serve more than 100,000 business locations and more than 500 financial companies.
The acquisition is expected to close in the third quarter and each company will operate individual until early 2011. The purchase price was not disclosed.
NetDeposit Chief Executive Danne Buchanan will continue to oversee the existing NetDeposit operations and take on an "expanded" executive role in the combined company, BankServ said in a press release.
