to join Metavante Financial Solutions Group
MILWAUKEE, June 27, 2005 â Metavante Corporation, the financial technology subsidiary of Marshall & Ilsley Corporation (NYSE: MI), today announced the signing of a definitive merger agreement to acquire GHR Systems, Inc., of Wayne, Pa. Metavante is acquiring the company from GHRâs three founders and other investors.
The $65 million acquisition, of which approximately $55 million will be funded using Marshall & Ilsley Corporation common stock, is expected to close in the third quarter, pending regulatory approval and other customary closing conditions. The purchase is not expected to have a material impact on M&Iâs financial results.
The company will continue to operate under the name of GHR Systems, Inc., and will become a subsidiary of Metavante Corporation.
GHR Systems is a leading provider of loan origination solutions for the residential mortgage and consumer finance industries, offering point of sale products for any channel together with comprehensive underwriting, processing and closing technology. Four of the top 10 and 15 of the top 50 U.S. mortgage lenders are GHR clients. GHR systems are used by large, mid-sized, and emerging lenders to better market, sell and close loans through all distribution channels, including wholesale, retail, consumer direct and correspondent.
"As a leading provider of consumer finance and mortgage origination products and services, GHR will bring one of the most proven technology and market-leading solutions to our clients," said Frank R. Martire, Metavante president and chief executive officer. "GHR serves many of the largest U.S. financial institutions and has focused on the top-100 bank market, which is important to Metavante. We believe that the acquisition of the GHR Systemsâ lending solutions platform will be perceived by our clients of all asset sizes as a valued addition to our technology offerings."
Since its establishment in 1985, GHRâs mission has been to make the origination process easier for all parties involved â borrowers, lenders, manufacturers, vendors, brokers and processors â by supplying technology that provides faster and better information. In November 2000, Metavante established partial ownership of GHR purchasing approximately five percent of the company.
"Our mission has always been to provide our customers with the maximum of operating efficiency through the most complete and automated systems," said GHR President Cyrus Brinn. "Joining Metavante will help us to better serve our clients with a broader array of financial services technology products."
The GHR management team, led by Cyrus Brinn and Allan Redstone, will continue operating the business and become part of the Metavante Financial Solutions Group headed by Paul Danola, president and chief operating officer, Metavante Financial Solutions Group.
"By providing automation technology and services for residential mortgages that includes end-to-end origination from point of sale through underwriting, processing, closing, and documentation, we will now be able to deliver a premier, mortgage loan origination solution to our clients," said Danola.