Transactis and Data Impact, both makers of electronic accounts
receivables software, have merged. The companies did not disclose the
financial terms of the deal. Combined, the two handle 200 million
invoice pages and roughly $2 billion in processed payments annually.
The company will be headquartered in New York, with offices in Huntington Beach, Calif.; Dallas, and Charlotte, N.C.
Transactis and Data Impact, providers of electronic accounts receivables solutions, have merged. Backed by one of the industry's most experienced teams, the combined entity offers a robust suite of B2B and B2C presentment and payment solutions for billers and the banks that serve them.
"Collectively, our two growing companies process over $2 billion in payments annually and serve some of the largest banks in North America and their billers. Coupling our e-marketing and e-messaging with payment processing provides exceptional add-on value to consumers, businesses and banks."
"By combining Data Impact and Transactis, we have created a single comprehensive provider that serves the diverse receivables processing needs of both business-to-consumer and business-to-business organizations," noted Transactis Chairman and CEO Joe Proto. "Collectively, our two growing companies process over $2 billion in payments annually and serve some of the largest banks in North America and their billers. Coupling our e-marketing and e-messaging with payment processing provides exceptional add-on value to consumers, businesses and banks."
Today's announcement underscores the strategies of both companies to provide a broad suite of electronic billing, payment and document management tools that address the accounts receivable functions of organizations ranging from small and middle-market billers to large, multinational corporations that serve both consumers and businesses. The complementary nature of the two companies' product lines creates immediate synergies to better serve their existing and growing customer bases.
"Bringing a robust, full service receivables and payment solution to market is a vision that Joe and I have shared," said Data Impact CEO Michael Lane, who will serve as President of the combined company. "While both product sets have similar offerings, each brings unique functionalities that can be leveraged by the other, for example, mobile capabilities, reconciliation functions and, self-service provisioning. The combination of Data Impact's extensive B2B experience coupled with Transactis' B2C focus creates a comprehensive offering that can immediately benefit our bank partners and their clients."
Financial institutions and corporate billers alike stand to gain by embracing integrated e-billing solutions as identified in a late 2010 report by industry research firm Aite Group: Integrated Receivables Hubs: Revolutionizing Receivables Processing. According to Nancy Atkinson, senior analyst at Aite, "The concept of integrated receivables...addresses most of the pain points companies cite with regard to their receivables and cash application processes. Banks that offer integrated receivables hub solutions also see considerable profitability and enhanced client relationships as a result."
The combined companies' full menu of B2C and B2B e-billing, payment and document management solutions will appeal to a wider set of billers. For instance, banks looking to offer EBPP/EIPP products can now work with a single service provider to address both business invoicing and consumer billing requirements.
Mark Brousseau, Vice President of Research and Sales for the Institute of Financial Operations and contributing editor to IAPP/IARP/TAWPI, echoes this sentiment and adds, "Banks and billers want to provide exceptional service and value to their customers without focusing on technology. Transactis and Data Impact combining to serve both the business and consumer holds great appeal."
Additionally, both organizations' customers can leverage Transactis' unique Virtual Incentive Platform that connects companies and their customers through loyalty programs, digital offers, and electronic coupons. This technology provides cross-sell/up-sell opportunities to enhance customer engagement and retention. The platform was brought on board in August 2010 with Transactis' acquisition of OfferIQ.
These two businesses have an experienced group of executives with deep backgrounds in financial technology, banking, and SaaS companies. Mr. Proto founded REMITCO, the largest remittance processing company in the industry, which was acquired by First Data in 2000, and also Financial Telesis, which served 60 of the top 100 banks and was acquired by CoreStates, now part of Wells Fargo, in 1992. Mr. Lane served as General Manager of Bottomline Technologies, a leading provider of cash management solutions, and before that was Managing Director of Global Banking and Capital Markets for Pegasystems, a provider of business process management solutions. Mr. Lane also held executive positions with Accenture, Chase, and Bankers Trust.
The combined companies will continue to operate under their respective brands with corporate headquarters in New York, and offices in Huntington Beach, Dallas, and Charlotte. The merger was facilitated through Transactis' acquisition of Data Impact's assets. Specific financial terms of the agreement were not disclosed.