Misys PLC, a manufacturer of core banking systems, said Monday it would distribute S1 Corp.’s Internet banking products to its wholesale banking clients outside the Americas.
Under the five-year, non-exclusive strategic relationship, the Misys Wholesale Banking Systems unit will offer S1 Corporate Banking, S1 Personal Banking, and S1 Trade Finance applications, separately or integrated on the S1 Enterprise Platform, to banks in Europe, Africa, the Middle East, and Asia.
Misys said the software would provide the foundation for what it called the “Misys eServices Platform, a multi-channel solution for wholesale banks.”
Jerry Luckett, the director of product and strategy at Misys Wholesale Banking Systems, said the London company would initially repackage S1’s offerings for the international market and that the two companies would work together to continue to enhance the software.
Misys, which has 1,200 banking customers in 120 nations, will move users of its Fontis e-banking software to S1’s products, Mr. Luckett said.
“We’ve got a migration plan in place for each of our existing customers,” he said. “We will continue to support them on our existing platform as appropriate,” while planning to move them to the new platform in a timely fashion. The timing of those moves will be up to negotiations with the individual banks. “We are not going to force the pace.”
The deal gives S1, of Atlanta, a bigger sales force and expands its opportunities outside the North American market, which has become crowded with competitors offering Internet software to financial institutions.
“With Misys’ extensive sales and services infrastructure, S1 is able to triple its global presence overnight,” Jaime Ellertson, S1’s chief executive, said in a press release announcing the deal.
Laurie Douglas, a spokeswoman for S1, said the two companies have worked together before, and they have 10 joint customers in the pipeline.
The deal focuses on S1’s Internet banking software and does not include its applications for call centers, tellers, or branches, Ms. Douglas said. However, if Misys’ customers want the other modules, “the structure of the agreement does allow for those conversations to take place.”
Analysts said the deal reflects the growing globalization of the cash management business for banks and their corporate clients.
Christine Barry, the wholesale banking analyst at the Boston research and advisory firm Celent Communications LLC, compared Misys’ strategy to that of Fidelity National Financial Inc., which has pursued a series of bank-technology acquisitions since April, which it bought Alltel Information Services from the telephone company Alltel Corp. (The unit is now called Fidelity Information Services.)
“It seems as though the vendors are thinking the winning formula for success is to be everything to everyone. We’re seeing a lot of vendors moving in that direction,” Ms. Barry said.
Nikolai D. Fisken, an analyst at the Little Rock investment firm Stephens Inc., was more doubtful. “S1’s track record in Europe has been lackluster at best,” he said in an interview. “Misys is a powerhouse. If there’s a partner who can introduce them to a lot of people, Misys is the one. But I’m highly suspect.”
