Jersey City, NJ, October 17, 2005 â Fundtech Ltd. (NASDAQ: FNDT), a leading provider of end-to-end corporate banking and securities processing software and services, today announced the signing of a definitive agreement to acquire Radius Partners, a leading provider of straight through processing (STP) solutions to the global securities industry, located in Pembroke, Massachusetts.
By acquiring Radius Partners, Fundtech adds domain knowledge and management depth in the securities processing arena. Fundtech recently announced its entry into this market segment, which leverages its success in developing sophisticated systems for global banks.
The two companies have been collaborating on the development of TRADEplusâ¢, a software solution aimed at achieving real time Delivery versus Payment (DVP) in post-trade securities processing. With TRADEplusâ¢, financial market participants integrate trade execution, trade allocation, matching, account/settlement instruction and settlement notification processes into a single, automated process.
Over time, Fundtech expects to help financial firms increase their investment capital and returns by explicitly linking securities, FX, and cash payment processes to reduce levels of un-invested cash and collateral required to support their investment activities. Fundtech will focus on helping financial service firms (1) improve efficiency and controls â reducing the cost, time, and risk of processing transactions; (2) effectively distribute work processes â via a web-based thin-client solution accessible across groups, offices, and individuals; and, (3) increase revenues â through new web-based securities services.
Reuven Ben Menachem, CEO of Fundtech said: "Radius Partners has proven itself to be an invaluable partner in our recently announced entry into the securities transaction processing business. Combining our expertise, Fundtech has developed a truly innovative post-trade securities processing system for Omgeo. We look forward to working with the Radius team to expand Fundtechâs product line for capital markets."
Chris Walsh, CEO of Radius Partners, said: "Our knowledge of securities transaction processing has enabled us to offer our solutions to the worldâs most innovative financial services organizations. By combining with Fundtech, we will expand our reach to best support the global needs of our clients and further our market penetration and industry recognition."