Digital Insight Scoops Up Rival - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

Digital Insight Scoops Up Rival

Internet banking services provider Digital Insight Corp. announced today it will acquire rival nFront Inc. for $439 million in stock.

Digital Insight provides back-end services to financial institutions that let them offer online banking. The company also designed Axis, a product that works with the data processing systems of financial institutions in real time to allow transactions conducted on the Web site to be posted immediately.

In addition to providing online banking services for small and midsize financial institutions, nFront also offers Web-site design, maintenance and hosting, training and support, and marketing consulting services.

Upon completion of the deal, which is expected in February, the combined entity will operate under the Digital Insight name and will be headquartered in Calabasas, Calif. Tripp Rackley, nFront CEO, will become president of Digital Insight and a member of the board of directors. John Dorman will remain Digital Insight's CEO and chairman.

After the acquisition, Digital Insight stands to have a combined customer base of 645 financial institutions and more than 640,000 users of its services. Banc of America Securities analyst Bob Austrian says the deal will position Digital Insight to better compete because it is "outdistancing its competitors by getting larger" through acquisition. NFront will continue to operate out of its Atlanta headquarters and will extend its services to include mortgage origination, online trading, and insurance.

The stock-for-stock deal will include an exchange ratio of .579 Digital Insight shares for each share of nFront. Digital Insight expects the transaction to accelerate time to profitability by at least one quarter.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
The State of Cloud Computing - Fall 2020
The State of Cloud Computing - Fall 2020
Download this report to compare how cloud usage and spending patterns have changed in 2020, and how respondents think they'll evolve over the next two years.
Commentary
Why 2021 May Turn Out to be a Great Year for Tech Startups
John Edwards, Technology Journalist & Author,  2/24/2021
News
How GIS Data Can Help Fix Vaccine Distribution
Jessica Davis, Senior Editor, Enterprise Apps,  2/17/2021
Slideshows
11 Ways DevOps Is Evolving
Lisa Morgan, Freelance Writer,  2/18/2021
Register for InformationWeek Newsletters
Video
Current Issue
2021 Top Enterprise IT Trends
We've identified the key trends that are poised to impact the IT landscape in 2021. Find out why they're important and how they will affect you.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll