Fair Isaac Corporation and London Bridge Software Holdings plc, a major provider of intelligent business software, announced that the companies have reached an agreement on the terms of a recommended cash offer by Fair Isaac to acquire the ordinary share capital of London Bridge. The offer will be GBP 0.95 in cash for each existing issued and to be issued ordinary share of London Bridge, for a total cash consideration of GBP 166.2 million (approximately $299 million). The directors of London Bridge, representing in the aggregate approximately 46.2% of the issued and outstanding share capital have signed irrevocable undertakings to accept the offer. The offer is expected to close in Fair Isaac’s third fiscal quarter, if the conditions to the offer are satisfied. This transaction will enable Fair Isaac to provide world-class analytics through another industry-leading solution, extending its analytic reach to the entire customer lifecycle.
Fair Isaac intends to incorporate London Bridge’s core expertise and leading software and systems for collections and recovery into a solutions portfolio that already includes the industry-standard platforms for account management and fraud detection. Fair Isaac believes it can leverage London Bridge’s installed base of customers for collections and recovery to deliver collections-focused scoring solutions, giving businesses access to customer decision strategies powered and influenced by analytics at the critical revenue recovery stage.
“We are very pleased to be able to announce today the recommended offer for London Bridge,” said Tom Grudnowski, Chief Executive Officer at Fair Isaac. “The acquisition of London Bridge fits clearly within Fair Isaac’s strategy of adding other mission-critical vertical applications to its existing portfolio of analytics applications and decision management solutions. Our businesses are highly complementary and we expect the acquisition of London Bridge to create benefits for both companies’ customers and employees. We are also excited about the planned addition of Jon Lee and Gordon Stuart to our management team since they bring valuable expertise in the collections and recovery arena. Gordon Crawford, who will provide us with consulting services, will significantly add to this expertise.”
“We believe that the recommended offer by Fair Isaac for London Bridge provides our shareholders with certainty and value,” said Gordon Stuart, Chairman at London Bridge. “Fair Isaac is not only gaining a strong platform to develop its UK and European business but also to reinforce its position in the U.S. In turn, the management and employees of London Bridge have the opportunity to be part of one of the world’s leading providers of analytics applications and decision management solutions. I look forward to working with Fair Isaac to develop further the enlarged business.”
London Bridge’s collection and recovery product portfolio includes Debt Manager, a fully integrated debt collections and recovery system, enabling the identification, segmentation, prioritization and treatment of credit risk at both the customer and account level and both collateral-backed and non-collateral backed loans. It also includes Recovery Management System, which manages and directs the recovery process of bad debt accounts, emphasizing internal collections, legal, bankruptcy, collection agency placement, collateral tracking, accounting, administrative and management reporting. London Bridge’s BridgeLink eServices network, enabling users to exchange information, request, complete and manage transactions with their third party service providers, supplements these products.
London Bridge’s mortgage and e-commerce business includes mortgage origination and default management products Diamond, The Mortgage Originator, and FORTRACS, as well as services through BridgeLink.
London Bridge’s core banking product, Phoenix System, is an integrated client/server core banking solution utilizing Windows, NT platforms, the Internet and other open technologies.
In addition to creating enhanced solutions by delivering analytics-influenced decisions through London Bridge’s credit and customer management technologies, the transaction will extend Fair Isaac’s domain expertise in financial services, telecommunications, insurance and healthcare. Over 35% of London Bridge’s 2003 revenues were generated outside of the U.S. and London Bridge maintains offices in six countries.
Fair Isaac will provide further information regarding the offer during its Q2 ’04 Earnings Conference Call on April 29, 2004. The UK press announcement of the offer may be viewed at [www.londonstockexchange.com].
About Fair Isaac
Fair Isaac Corporation (NYSE:FIC) is a preeminent provider of creative analytics that unlock value for people, businesses and industries. The company’s predictive modeling, decision analysis, intelligence management, decision management systems and consulting services power billions of mission-critical customer decisions a year. Founded in 1956, Fair Isaac helps thousands of companies in over 60 countries acquire customers more efficiently, increase customer value, reduce fraud and credit losses, lower operating expenses and enter new markets more profitably. Most leading banks and credit card issuers rely on Fair Isaac solutions, as do insurers, retailers, telecommunications providers, healthcare organizations and government agencies. Through the www.myfico.com Web site, consumers use the company’s FICO(R) scores, the standard measure of credit risk, to manage their financial health. For more information, visit [www.fairisaac.com].
About London Bridge Software Holdings plc
London Bridge Group has over 1,600 clients worldwide and provides a comprehensive portfolio of software and e-Commerce solutions including Customer and Enterprise Management Software, Banking Software, Credit Management Software and enterprise-wide Mortgage Lending software.
London Bridge Group has offices in Atlanta, Orlando, New York, London, Wellesbourne, Germany, S. Africa, Australia and Singapore. London Bridge Software Holdings plc is listed on the London Stock Exchange (LNB).