Software Firm Buys Trust Systems Inc.
Broadway & Seymour Inc. said it has acquired Trust Systems Inc., one of the biggest suppliers of mainframe-based trust software to the banking industry.
The cash purchase was made Monday, the buyer said. It did not disclose the amount.
The deal makes Broadway & Seymour, a software and systems consulting company, a major player in the growing market for trust systems, an area the firm has served until now only through consulting services.
A Prosperous Business
Trust is one of the few bright spots in the banking industry. Although growth in trust business slowed last year, revenue for the top 10 trust institutions rose 9.5% last year.
"We're trying to become more and more vertical, more product-oriented," said William G. Seymour, a senior vice president at Broadway & Seymour.
The pact will give Trust Services, in its turn, cash and marketing clout. "Broadway & Seymour will give us the size and the reputation in the marketplace that we need to ensure that we have staying power," said Samuel H. Smith, president of Trust Systems, in a prepared statement. "This new relationship enables us to satisfy a backlog of requests from our clients."
The trust vendor's system, called AMtrust, is tailored for banks' domestic portfolios. The product, which costs about $1 million, supports personal trust, employee benefit trust, and master trust operations.
The firm is now working on a version of the software that will handle multicurrency portfolios for global custody operations.
Impressive Client List
Privately-held Trust Systems has 15 clients among the 100 largest trust institutions, as measured by assets under management.
Among its clients are NCNB National Bank, Manufacturers Hanover Trust Co., Security Pacific National Bank, and Harris Trust and Savings Bank.
Both companies are headquartered in Charlotte, N.C. Trust Systems will be a wholly-owned subsidiary of Broadway & Seymour, and will continue to use its own name.
Mr. Smith will continue in the role of president for the Trust Systems subsidiary.