In a move that will give D+H deeper roots in the U.S. and a broader product set, the Canadian company announced late in the day Tuesday that it has reached an agreement with Harland Clarke Holdings Corp. to acquire Harland Financial Solutions, pending regulatory approval.
The closing date has not yet been established, but is expected to take place in the third quarter of 2013. The purchase price is $1.2 billion in cash.
Toronto-based D+H is a North American financial technology provider with 1,700 U.S. bank and credit union clients. Its products include Mortgagebot point of sale and mortgage origination software. It also provides lending and payment technology to the Canadian market.
Harland, a bank software provider based in Lake Mary, Fla., has 5,400 financial institution customers. It provides core banking, lending, compliance and channel management technology to U.S. banks, credit unions and mortgage companies.
With this deal, D+H plans to expand its U.S. presence and its product suite. When the deal is complete, it expects to have a U.S. client base of more than 6,200 financial institution clients in North America. It also expects to see cross-selling opportunities through the acquisition. For instance, D+H does not currently have a core solution while Harland is the fourth largest provider of core banking software in the U.S.
"Experience shows that the installation of a core banking system drives additional sales of ancillary FinTech solutions," says Gerrard Schmid, CEO of D+H. "HFS has several competitive solutions such as online and mobile banking, branch automation, business intelligence solutions and lending solutions to complement the sale of a core platform. In combination with our D+H products we can address the broader needs of our combined customer base and use our improved value proposition as a springboard to grow in the U.S. market that includes over 13,000 credit unions and community banks."
Harland Clarke Holdings Corp. will continue to provide payment solutions, security and transactional printing, marketing services, security and identity protection solutions, retail products, business process outsourcing, as well as data management and assessment, the company said in a press release.
