FAIRFAX, Va.: October 1, 2003 -- Mantas, Inc. and SOTAS today announced a strategic merger that will provide financial services and telecommunications providers with analytic applications that address their risk management, performance management, fraud detection and operational analysis needs. Safeguard Scientifics, Inc. (NYSE: SFE) has invested an additional $14 million in the merged company. The investment will be directed towards continued global expansion and product advancement.
Mantas, based in Fairfax, Va., provides enterprise-wide anti-money laundering, surveillance and trading compliance software for more than a dozen of the worldâs largest financial institutions including Citigroup, Merrill Lynch and ABN Amro. SOTAS, based in Gaithersburg, Md., provides decision support solutions to several global fixed line and mobile communications service providers including Verizon, Cavalier Telephone, Maxcom, and TELUS. The marriage of Mantasâ behavior detection technology with SOTASâ real-time analysis capabilities will fuel the development of additional analytic applications.
"The combination of market-leading deep computing from Mantas and real time analysis from SOTAS offers real risk management and operational benefits for our customers," said Simon Moss, CEO, Mantas. "This merger reinforces our leadership in global compliance and risk management and accelerates the introduction of new and incredibly exciting products for the financial services and telecommunications industries. The combined organization brings together people, knowledge and scale that can be considered second to none in it market. Itâs a great move for Mantas, a great move for our clients and a tremendous step to reinforcing Mantasâ global leadership."
The existing Mantas management team led by Moss will continue to lead the combined company under the Mantas name. Tom Cady, formerly SOTAS CEO, will support the integration of the firms through the end of the year and several other SOTAS executives will join the Mantas organization in support of the telecommunications market. The merger will also result in substantial economies in operating costs that will be used to expand worldwide sales and technology resources. The merger is effective immediately.
"We recognize the gains that each of these companies have made in their respective markets" said Anthony L. Craig, president and chief executive officer, Safeguard Scientifics, Inc. "Bringing them together presents Mantas with tremendous opportunities for technological innovation and growth. The new Mantas has the management, technology, market opportunity, and customer successes to become a world class leader."
International Data Corporation categorizes products provided by the merged company as analytic applications. Analytic applications provide users with unique insight and information that is critical to monitoring and maximizing a companyâs performance.
According to IDC, the analytic applications sector grew 9.4% in 2002, passing the $3 billion mark, and this figure is expected to pass $4.8 billion by the end of 2007. At its current growth rate, Mantas would have placed among the fastest growing companies in IDCâs August 2003 report: "Worldwide Total Analytic Applications Software Competitive Analysis, 2003: 2002 Shares and Current Outlook."
Todayâs announcement has already generated support from analysts that track the financial and telecommunications industries.
"Blending SOTAS and Mantas is good chemistry for the times," says Dan Baker, research director of Technology Research Institute, an analyst firm that tracks telecom revenue assurance and analytics markets. "The crossover of telecom and financial markets will bring all sorts of micro-payment and IP content settlement issues to the fore. The new, merged company is uniquely positioned to build software for this emerging âtelefinanceâ world."
"With Mantas' merger with SOTAS, they are seeking to extend the success they've had in regulatory compliance into analytics," said Robert Iati, Director, Securities & Capital Markets, TowerGroup. "This is an area where financial institutions consistently seek to gain a competitive edge."
Mantas' behavior detection technologies are designed specifically to help financial institutions fight money laundering, protect against brokerage and bank fraud and assist in delivering compliant and effective execution for trading desks. The Mantas Behavior Detection Platform operates on an enterprise-wide basis, monitoring every transaction and account across a firm globally.
For fixed line and mobile communications service providers, Mantas now combines a core technology platform that mines and analyzes proprietary data from communications networks and other data resources with applications in three product lines: Network Assurance, which includes traffic management, quality of service, best value routing and security management; Revenue Assurance, such as fraud management, billing verification and margin analysis; and Customer Assurance.
Angela Ross (Telecom)
Emmanuel Kerr Kilsby
203-406-8800 ext. 11