Union Bank of Calif. Sells a Unit for $10M
KANSAS CITY, Kan. - Union Bank of California has sold its bankruptcy software business, DCI Chapter 7 Solutions Inc., to Electronic Processing Inc. for $10 million in cash.DCI is "quite different from a traditional bank line of business and very different from a technology business," said Christopher E. Olofson, president and chief operating officer of Kansas City-based Electronic Processing. "But we are long-term players in this market. We think [the purchase] is an excellent opportunity."
The market associated with Chapter 7 issues is the largest and fastest-growing one in the bankruptcy business. It generates several billion dollars in asset proceeds, Mr. Olofson said.
Electronic Processing, which had $3.97 million of third-quarter revenues, provides workflow management software to bankruptcy trustees handling Chapters 7 and 13 bankruptcy cases. Trustees are responsible for liquidating a debtor's assets, including such luxury items as furs, jewelry, and real estate.
This cash is eventually distributed to a creditor but typically stays on deposit until it is disbursed, a process that can take years.
FleetBoston Is Using Syndication System
BOSTON - FleetBoston Financial Corp. has installed a loan syndication system from Automated Financial Systems.The AFSXpress Syndications system helps banks participating in loan transactions communicate with other institutions and compile information about deals. It automates such processes as competitive bidding, the booking of loans, and accounting.
The system, which FleetBoston began using in September, will improve the efficiency of the bank's syndicated lending, said Susan W. Kuntz, senior vice president and director of corporate loan administration at FleetBoston.
Automated, which is based in Exton, Pa., and FleetBoston customized the system for the banking company's needs.
Federal Agencies Pick Cryptographic Cards
TORRANCE, Calif. - Rainbow Technologies Inc., a leader in hardware security devices for electronic commerce, announced a major government contract.The company said its Mykotronx Fortezza Plus Crypto Card has been chosen for security-classified voice and data communications in the Department of Defense and other agencies.
The three-year contract could call for delivery of as many as 60,000 of the cryptographic cards, for $15.3 million. The cards are installed in "secure terminal equipment" and encrypt data at the 128-bit level. Rainbow Technologies has historically done most of its business with government, and it is taking its expertise into the private sector with products such as cryptographic accelerators and the iKey, a smart card substitute that fits into a computer's serial port.
The Fortezza cards will accompany equipment supplied to the government by L-3 Communications Systems-East of Camden, N.J.
Firstar's Call Centers Get Service Software
PORTLAND, Ore. - Firstar Corp. has equipped both its call centers with Concentrex Inc.'s Encore One-to-One software.The Milwaukee banking company's call centers in Cincinnati and Milwaukee are using the software to open accounts and answer customer queries that are not handled by automated voice response.
Concentrex, formerly CFI ProServices Inc., has a custom projects division that handles implementations for large customers such as Firstar.