German electronic banking and commerce software developer Brokat Infosystems AG has acquired Transaction Software Technologies Inc (TST), an Atlanta, Georgia-based provider of cash management software and services for $18.7m,
Brokat said the acquisition helps it develop its ‘financial portal’ concept of providing an end-to-end offering in e-business. It aims to offer web-based corporate cash management, retail banking and brokerage services, all on the same site, integrating TST’s cash management software, used by eight of the 20 largest US banks, into Brokat’s own Twister e-commerce suite.
Buying TST also furthers Stuttgart-based Brokat’s expansion in the US, where it has had a presence since March last year, with a wholly owned subsidiary in Atlanta plus five regional offices.
In announcing the acquisition, Brokat also said that it expects to report a pre-tax loss of around DM20m ($10.9m) for its current financial year which ends June 30. This compares to a loss of DM8m ($4.39m) in its 1997/98 year.
Brokat expects to move into the black during 2000, but only in the latter part of that year, meaning that it will only be able to report a profit in its 2000/2001 fiscal year. The company also said it expects to surpass analysts’ estimates of DM50m ($27.46m) in revenue for this year, up from DM29.6m ($16.2m) in 1997/98.
