Alltel Corp. is acquiring a software firm, Corporate Solutions International, to add origination capability to its consumer loan system.
Little Rock-based Alltel said last week that it would pay an undisclosed amount for the privately held Atlanta company, which offers software based on client/server technology.
Alltel, though a prominent provider of systems for the servicing and accounting of consumer loans, lacks software for originations.
CSI's AP7000 system would be integrated into Alltel's Advanced Loan System.
"We are positioning ourselves to be a big player," said Jeff Fox, president of Alltel Information Services, the division that will sell AP7000. He called it a "world-class origination product that will help us achieve that goal."
About a dozen banks use CSI's software, said its president and chief executive officer, Joseph M. Willis. He said Alltel's technological resources will allow CSI to become "a leader in consumer lending."
AP7000 uses imaging to originate and process car, recreational vehicle, and manufactured housing loans and home equity lines of credit.
Alltel's ALS is the most widely used consumer loan servicing system.
Twenty-one of the top 100 U.S. banks have it installed, according to Tower Group of Cambridge, Mass. Alltel said it services 11.3% of the $961 billion of outstanding nonmortgage consumer loans in the United States.
Alltel is also the leader in mortgage loan servicing, processing 57% of U.S. mortgage loans and serving 18 of the top 25 servicers.
Mr. Willis and CSI's 30 employees would become Alltel staff members and CSI's headquarters would remain in Atlanta.
Before establishing CSI five years ago, Mr. Willis founded Coin Banking Systems, a provider of DOS-based consumer loan software.
Alltel Information Services is the third largest outsourcer serving financial institutions. It earned $1.1 billion of revenue in 1998, compared to Fiserv's $1.2 billion, and the $3.0 billion earned by Electronic Systems' Financial Industry Group.