In what may be the beginning of a rash of mergers among software vendors to the online banking industry, InteliData Technologies Corp. last month swallowed up Home Account Holdings and its operating subsidiary, Home Account Network. The deal is valued at $36.2 million.
"Consolidation will be the order of the day," predicts Bill Gorog, InteliData's founder and chairman. "We will see fewer players in the online banking software industry in the future." Gorog says he thinks consolidation will become increasingly necessary because companies that offer only "niche" solutions "will have difficulty surviving."
InteliData includes in its package a wider range of products than Home Accounts, but in some fields Home Accounts is stronger. The combination is expected to strengthen InteliData by giving it a larger customer base, especially among the nation's 50 largest largest financial companies. Home Account lists among its clients Bank of America, Citigroup, First Union Corp., United Missouri Bank, Metris, Scudder Kemper and Alliance Capital.
The announcement came on Jan. 2, 10 days after InteliData's stock hit a 52-week low of $2.25 per share. It subsequently recovered smartly, to $5.06 on Jan. 30.
InteliData will close Home Account's headquarters in Emeryville, NC, while InteliData's headquarters will remain in Reston, VA. Each of its offices in Charleston, SC, Omaha, NE, and Toledo, OH will focus on different products. About 50 employees from the two companies have been let go, leaving InteliData with 210.
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