Southern National Corp. this week said it had bought a majority stake in a small technology company and aborted a similar deal with another one.
Winston-Salem, N.C.-based bank said Thursday that it had bought 51% of AutoBase Information Systems Inc., Charlotte, for an undisclosed sum. AutoBase maintains a computerized data base of new and used cars and customer information for 50 dealerships in the Charlotte area.
On Wednesday, Southern National said it had terminated a definitive agreement to buy a 60% share of Customer Access Resources Inc., a Raleigh- based provider of call-center services to financial institutions. Southern National had announced the $10.3 million cash deal on May 20.
John A. Allison, the bank's chairman and CEO, said the purchase of AutoBase offers his bank "the unique opportunity to build a comprehensive package for our automobile dealership customers."
Mr. Allison said the deal complements Southern National's purchase in March of Greenville, N.C.-based Regional Acceptance Corp., which makes auto loans to people with impaired credit. "The combination of Regional, AutoBase, and our existing auto sales finance operation will allow us to provide an integrated finance and marketing program," Mr. Allison said.
Southern National's deal with Customer Access was terminated because the companies discovered their operating styles did not mesh, said Don Montoro, senior vice president for marketing at Customer Access.
"It could have just been the speed at which a young, entrepreneurial company needs to move and the difference with a very large, established banking organization," he said.
Mr. Montoro added that Customer Access still maintains a strong vendor- client relationship with Southern National.
Southern National, with $20 billion in assets, has been trying to diversity its earnings base by investing in technology companies related to financial services but outside traditional banking.
Recent investments, through Southern National's venture capital unit, include Nexus Software Inc. of Raleigh, which produces computer networking software for banks; and Goddard Technologies Inc. of Greenville, S.C., a security company.
