HNC Software Inc. announced Monday that it has commenced negotiations with Open Solutions Inc. to establish a strategic alliance with OSI.
The proposed alliance would be implemented in lieu of the parties’ previously announced plans to merge and is expected to involve a cooperative marketing relationship and a minority equity investment in OSI by HNC. HNC believes such a strategic alliance is preferable to a merger at this time, due to current uncertainty in the small to medium-size banking business environment.
OSI, a privately-held company based in Glastonbury, Conn., develops and markets client/server software that addresses core processing functions of small and medium-size banks and credit unions. HNC believes that the proposed strategic relationship will enable HNC Financial Solutions and OSI to exploit synergies between those of their products that address complementary applications.
“OSI’s products fit very well with some of our retail banking solutions,” said Michael A. Thiemann, HNC Financial Solutions Group president. “We intend to move full-speed ahead to integrate the FTI GL product into OSI’s The Complete Banking Solution(R), while also exploring which of our predictive products will be of most benefit to OSI’s market.”
Douglas K. Anderson, chairman & chief executive officer of Open Solutions Inc., commented, “There’s no doubt that introduction of HNC’s predictive modeling and analytical tools will provide community banks with technology that previously only large institutions could employ. However, although we initially contemplated a merger, both management teams have come to believe that at this time a strategic alliance is the best way to keep our respective organizations focused on making the right product decisions.”
OSI has its headquarters in Glastonbury, Conn., with several sales offices throughout the United States. OSI’s products, The Complete Banking Solution(TM) and The Complete Credit Union Solution(TM) are sold and installed in community banks and credit unions for complete core data processing in a pure client/server environment.
Features include deposit and loan processing, teller and platform automation, electronic forms, investor reporting, office automation and a marketing-style CIF. Additional information can be obtained by contacting Michael D. Nicastro, vice president of marketing, or via the Internet at [www.opensolutions.com].
HNC Financial Solutions, an HNC Software business group, provides a powerful set of predictive business solution modules that address the mission-critical, customer-lifecycle management needs of financial institutions. HNC Software Inc. (Nasdaq:HNCS) is a world leader in the development and delivery of predictive software solutions in client/server environments.
With headquarters in San Diego, HNC Software Inc. provides innovative predictive software systems in the financial services, retail, insurance information, electronic commerce, and telecommunications markets.
For more information on HNC, contact Jane Leonard, HNC Software Inc., 5930 Cornerstone Court West, San Diego, Calif., 92121, 619/546-8877. For investor relations hotline, call 800/396-8052.