Brokat is to acquire 100% of privately held Automated Financial Systems (AFS) in exchange for approximately 569,260 Brokat ordinary shares that will be issued from previously authorized capital.
AFS complements Brokat’s recently introduced European e-brokerage suite, allowing Brokat to offer brokerage functionality tailored to the US and European markets. The addition of AFS will bring Brokat’s customer base of financial institutions to more than 2,100 globally.
Brokat, a provider of software for e-banking and e-business solutions, has acquired New York-based Automated Financial Systems (AFS), a provider of Internet and telephone-based brokerage systems.
The acquisition of AFS will complete Brokat’s North American financial services offering by incorporating brokerage functionality into its existing suite of e-finance applications, which includes retail, small business, corporate, and mobile banking solutions. The AFS suite of brokerage products and services will enable Brokat to offer a comprehensive solution for the trading of stocks, options, and mutual funds via multiple channels. Brokat plans to mobile-enable the AFS solution and integrate it onto Twister, Brokat’s open e-services platform, allowing all financial services applications to exist on one common architecture.
Brokat has expressed a strong commitment to its North American expansion with the recent acquisition of GemStone Systems and Blaze Software. “Each of these acquisitions has supplemented and strengthened our core product Twister,” said Stefan Roever, CEO of Brokat. “Brokat is now able to offer a complete e-finance solution on one open platform, giving us a competitive advantage in North America. As a result, we are well positioned for rapid growth, in the United States and worldwide.”
The acquisition is valued at approximately US$34.5 million, based on the closing price of Brokat’s ordinary shares of Euro 69.80 (US$60.61) on the Neuer Markt on October 11, 2000. Of this amount, approximately US$19.9 million in Brokat shares will be held in escrow and released to the sellers of AFS only upon satisfaction of certain performance-related events. The acquisition is subject to regulatory approvals and other customary conditions.