Siebel Systems buys Eontec
- By William Welsh
- Apr 20, 2004
Siebel Systems Inc. has acquired Eontec Ltd., a provider of multichannel retail banking solutions, in a cash deal worth at least $70 million, the company announced today.
Under the terms of the deal, Siebel of San Mateo, Calif., initially will pay $70 million to the shareholders of Eontec of Charlotte, N.C.
Depending on revenue achievement and contractual milestones, Siebel may pay up to an additional $60 million in earn-out payments during 2005. The deal closed April 19, according to company spokeswoman Shelley Knowlton.
The acquisition will let Siebel expand its banking solutions to include branch teller and Internet banking systems. This would create a retail solution that would allow banks to increase branch profitability using an integrated suite of financial transaction, marketing, sales, service and business intelligence capabilities.
The solution also will offer a standards-based, service-oriented architecture to handle a wide range of customer interactions through multiple channels, including the branch, call center, Internet and automated teller machines.
Eontec's employees will join Siebel's Retail Finance division, Siebel said. Patrick Brazel, Eontec's chief executive officer, will lead Siebel Systems' retail finance division following the acquisition.
Siebel Systems offers business applications software, and has about 5,000 employees and annual sales of $1.3 billion, according to Hoover's Online.
William Welsh is a freelance writer covering IT and defense technology.