The largest bank in the United States, Bank of America, has joined with electronic-billing and payment-services provider CheckFree Holdings Corp. to develop new E-commerce initiatives. The companies are planning, among other things, a service for banks that want to extend payment services on the Internet.
Under the terms of the agreement, CheckFree will obtain BofA's electronic-billing and payment assets. It also gets a 10-year contract to be BofA's consumer E-billing and payment provider. BofA will get 10 million restricted shares of CheckFree common stock and 10 million performance-based warrants for CheckFree common stock--a 16% stake in the company.