IRVINE, CA – Nov. 1, 2002: Golden Gate Capital and Parallax Capital Partners today announced the acquisition of the banking solutions group of Computer Associates International, Inc. (NYSE:CA). Jim Schaper, a 25-year software industry executive, has been appointed Chairman of the new company. Financial Terms of the transaction were not disclosed.
“We are pleased to partner with Parallax to acquire this business. It is our intention to build the company over the long term through aggressive product enhancement programs and new product development efforts,” said David Dominik, a Managing Director of Golden Gate Capital. “The banking solutions group joins our family of software companies, which in aggregate represent $350 million in revenues, and enjoys strong financial support from our $700 million in capital.”
The new company said it would retain existing management and staff, with headquarters in Plano, TX and additional primary office in Maitland, FL. Customers of the banking solutions group include the top 100 US banks as well as mid-to-small sized financial institutions and credit unions.
The banking solutions group offers a suite of back-office software applications that streamline banking operations. These applications automate commercial and retail functions, such as tracking customer transactions and assimilating key customer data. The product portfolio acquired today from CA includes the Infopoint banking products suite, Bank Performance Management (BPM) products, Solutions for Enhanced Productivity and Performance (SEPP) and the newly developed Customer Risk Informant (CRI) product family.
“The new company offers a full array of proven products that serve a dynamic marketplace and maintains a service and support organization that is recognized as first class,” said the company’s Chairman, Jim Schaper. “Customers will receive the same outstanding level of service that they’ve come to know over the years. Our vision to strengthen our presence in the banking and finance marketplace will be realized by maintaining strong customer relationships, by meeting customer product needs and by excelling at supporting and servicing their requirements.”
CA will work closely with the new company to ensure a seamless transition for Infopoint customers. The transaction is part of CA’s previously announced strategy to continually sharpen its focus on the core business of its six key solutions areas- – enterprise management, security, storage, application life cycle management, data management and application development, and portal and business intelligence. The sale of all the components of CA’s business applications division is now complete.
“The new company’s dedication to the banking and financial services sector makes this transaction a win for both Infopoint customers and our banking solutions group employees,” said CA President and CEO Sanjay Kumar. “We believe that Golden Gate and Parallax will do an excellent job of leveraging both the technology and talent that our banking group has developed over the years to enhance the performance and scalability of back-office financial operations.”
About the investors
Golden Gate Capital (http://www.goldengatecap.com) is a San Francisco-based private equity investment firm with approximately $700 million of capital under management. Golden Gate is dedicated to partnering with world-class management teams to invest in change-intensive, growth businesses. They target investments of up to $100 million in situations where there is a demonstrable opportunity to significantly enhance a company’s value. The principals of Golden Gate have a long and successful history of investing with management partners across a wide range of industries and transaction types, including leveraged buyouts, and recapitalizations, corporate divestitures and spin-offs, build-ups and venture-stage investing.
Parallax Capital Partners, LLC, based in Irvine, CA, is a private operating company that dedicates its resources to acquiring and managing technology-related businesses. Parallax focuses on middle-market companies that generate revenues of $10 to $250 million. To assist its operating companies in building long-term value, Parallax has established an extensive operational infrastructure, which includes accounting and finance, worldwide sales and marketing, research and development, customer support and human resources. These resources give Parallax the ability to acquire and transition whole companies, business units, product lines and technology. Together, Parallax and its partners have participated in over 200 transactions ranging in size from $5 million to over $1 billion. For more information, visit http://www.parallaxcap.com.
About Computer Associates
Computer Associates International, Inc. (NYSE: CA) delivers The Software That Manages eBusiness. CA’s world-class solutions address all aspects of eBusiness management through industry-leading brands: Unicenter for infrastructure management, eTrust for security management, BrightStor for storage management, CleverPath for portal and business intelligence, AllFusion for application life cycle management, Advantage for data management and application development, and Jasmine for object-oriented database technology. Founded in 1976, CA serves organizations in more than 100 countries, including 99 percent of the Fortune 500 companies. For more information, visit http://ca.com.
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