Online Resources To Acquire Integrated Data Systems
CHANTILLY, Va., June 14, 2005
Online Resources Corp. (Nasdaq: ORCC), a leading outsourcer of Internet
financial services, today announced that it has entered into a definitive
agreement to acquire privately held Integrated Data Systems (IDS), a premier
technology provider to over 50 credit unions. The acquisition provides
Online Resources with added distribution, specialized Internet banking
applications and enhanced professional service capabilities.
The purchase price is $5 million in cash and stock, plus assumption of
$300,000 of debt. The transaction also includes an earnout if future IDS
revenue significantly exceeds its trailing twelve-month revenue of $3.2
million. The Company expects that the acquisition will be neutral to its
2005 earnings and will be accretive in 2006. The acquisition is expected
to close by the end of the month.
“We welcome the IDS team to the Online Resources family,” stated
Matthew P. Lawlor, chairman and chief executive officer of Online Resources.
“IDS is product rich with complementary account opening, lending,
e-statement and other applications. Coupled with Online Resources’
distribution and marketing capabilities, we are confident we have a combination
that optimizes our respective strengths.”
Integrated Data Systems will become part of the Online Resources Banking
Division and continue to operate from offices in Woodland Hills and Pleasanton,
California. “We have similar cultures and track records of doing
what is best for clients,” stated Ann Marie Michael, president of
Integrated Data Systems. “We share a vision of leveraging our unique
integration capabilities to further distinguish our clients.”
Online Resources will provide updated full year 2005 guidance during
its second quarter earnings conference call scheduled for Wednesday, July
20, 2005 at 5:00 p.m. ET. Details for accessing the conference call will
be provided to the public in the next week.
About Integrated Data Systems
Integrated Data Systems (www.idsus.com) is a privately held software development
firm headquartered in Woodland Hills, California. Since 1990, Integrated
Data Systems has developed and implemented leading-edge software applications
for credit unions and other financial institutions.
About Online Resources
Online Resources powers Internet financial services for over 700 firms
nationwide. The Company’s proprietary account presentation, payment,
relationship management and professional services are branded to its client
banks, credit unions, card issuers and payment acquirers. The Company
serves over three million consumer end-users and processes over $10 billion
in payments annually. Founded in 1989, Online Resources (Nasdaq: ORCC,
Website: www.orcc.com) has been widely recognized as one of the nation’s
fastest growing technology firms.
This news release contains
statements about future events and expectations, which are "forward-looking
statements." Any statement in this release that is not a statement
of historical fact may be deemed to be a forward-looking statement. Such
forward-looking statements involve known and unknown risks, uncertainties
and other factors which may cause the Company's actual results, performance
or achievements to be materially different from any future results, performance
or achievements expressed or implied by such forward-looking statements.
Specifically factors that might cause such a difference include, but are
not limited to the Company’s: history of losses; dependence on the
marketing efforts of third parties; potential fluctuations in operating
results; ability to make and successfully integrate acquisitions of new
businesses; potential need for additional capital; potential inability
to prevent systems failures and security breaches; potential inability
to expand services and related products in the event of substantial increases
in demand; competition; ability to attract and retain skilled personnel;
reliance on patents and other intellectual property; exposure to the early
stage of market adoption of the services it offers; exposure to the consolidation
of the banking and financial services industry; and additional risks and
uncertainties discussed in filings made by the Company with the Securities
and Exchange Commission, including those risks and uncertainties contained
under the heading "Risk Factors" in the Company's Form 10-K,
latest 10-Q, and S-3 as filed with the Securities and Exchange Commission.
These factors should be considered in evaluating the forward-looking statements,
and undue reliance should not be placed on such statements.
Media Contact: Beth Halloran,
Director, Corporate Communications
Online Resources Corporation
703.653.2248
bhalloran@orcc.com
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