For the second time in less than a month, M&I Data Services, a financial software and services leader, expanded its e-commerce solution offering with its agreement to purchase a leading e-commerce technology provider: the Electronic Banking Services division of ADP. This agreement joins the recent acquisition of Moneyline Express, a bill payment and presentment solution from Travelers Express.
On Friday, M&I Data Services agreed to acquire the Business Express, FORTE/FORTExpress and CashExpress software products and outsourcing solutions of this ADP business unit. These products are designed to provide business clients with access to their banking information and transactions through a spectrum of delivery methods including an Internet web browser, a direct PC connection or telephone.
The acquisition includes the purchase of all assets, operational processes and customer relationships.
Additionally, M&I Data Services will be retaining the over 300 associates who currently market, develop and support these products. It is estimated that the annual revenue generated by this new business unit will initially be $40 million; it is also expected to be accretive to the earnings of Marshall & Ilsley Corporation in 1999.
“This acquisition is further evidence that M&I Data Services is dedicated to maintaining our leadership role in electronic banking solutions,” said Joe Delgadillo, president and chief executive officer, M&I Data Services. “Providing leading e-commerce solutions helps our bank customers help their customers compete in this emerging marketplace.”
ADP Electronic Banking Services is the market leader in providing electronic banking services to the small, medium and large corporate customers through its partnerships with 110 financial services institutions across the United States including 18 of the top 20 largest financial institutions.
Currently more than 120,000 business customers representing small, medium and large organizations use the ADP Electronic Banking Services products. These comprehensive cash management products are delivered via an outsourced or in-house platform. Current Electronic Banking Services financial services institution partners have relationships with 20 percent of the businesses in the United States.
In a January 7, 1999 American Banker article, industry analysts Killien & Associates Inc. estimate that the Internet will open up the cash management market to 40 million to 50 million small- to medium-sized business and commercial customers.
“This acquisition gives us an Internet-ready electronic banking solution that fits directly into our development efforts and is another key building block in our e-commerce strategy,” said Mike Hayford, executive vice president, corporate development at M&I Data Services. “To gain a strategic advantage, businesses of all sizes recognize the need to explore the opportunities posed by e-commerce. As a company, we strive to provide our customers with first-rate technology that can help them meet this growing demand.”
M&I Data Services is the market share leader in providing electronic banking solutions to the financial services industry with more than 200 financial institutions currently using M&I Data Services’ consumer banking platform. M&I Data Services is combining its consumer product solutions with the Electronic Banking Services within its newly established Electronic Commerce Group. Merging these solutions into a single organizational group reflects the commitment of the company to be a leader in the e-commerce technology market.
“M&I Data Services has a strong reputation for superior service and expertise in the financial services industry,” said Todd Hutto, president, ADP Electronic Banking Services division. “Combining the business electronic banking solution from ADP with M&I Data Services’ consumer electronic banking solution makes the company the leading provider of e-commerce technology to the full range of financial institution customers. Integrating these solutions with the recent M&I Data Services acquisition of the Moneyline Express product, an electronic bill payment and presentment solution, adds important functionality to their suite of available e-commerce products.”
M&I Data Services is a division of Marshall & Ilsley Corporation (Nasdaq: MRIS), a $21.6 billion holding company. Marshall & Ilsley Corporation is the only organization that represents both a financial institution and a data processor. This uniquely positions the company to offer proven business process outsourcing from a single source.
M&I Data Services provides leading-edge technology solutions to the financial services industry with external revenue of $413 million in 1998. Headquartered in Milwaukee, Wis., it offers consulting, software and processing solutions for financial institutions worldwide. The company’s rapid growth — 701 percent over the past 10 years — is being fueled by innovative product development, strategic product acquisitions and strong growth of its customer relationships. For more information, visit the M&I Data Services Web site at