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iSignthis acquires mystery core banking firm in €400,000 deal

iSignthis has entered into terms to acquire 100% of the issued capital of an EU based core banking platform software business.

The acquired firm has been in operation for more than a decade, and services more than 15  entities across the EU, Asia and North America. It is expected to deliver a “modest, but positive”, EBIT contribution for the full year 2018.

The firm’s core banking services have recently been certified, and the iSignthis intends to augment the offerings by adding its card processing modules as they also become progressively certified, including Visa, Mastercard, JCB and others.

The vendor’s revenue model is at present based upon a software licensing model, with annual maintenance fees, based upon licensed software installed on local servers operated by the banking client. iSignthis plans to adapt that model to Software as a Service (SaaS), which can in future be hosted as part of the Company’s secure and certified cloud infrastructure.

iSignthis expects to reach definitive agreement within 10-14 days, and complete due diligence within that period. Subject to due diligence, it will finalise things within a further seven days for €300,000 cash at completion, and €100,000 in ISX ordinary shares in six months, with an earn out commission paid in cash for sales completed within the next three months, based on receipted cash.

John Karantzis, CEO of iSignthis said “The addition of a proven core banking platform will allow ISXPay to accelerate its eMoney Account (EMA) portfolio rapidly, and to provide enhanced services to its business and prospective retail customers.

“The already certified integration to SWIFT and SEPA will save significant time for the Company, and will allow ISXPay to integrate quickly into our Central Banking facilities. The certified Tier 1 card scheme software developed by iSignthis inhouse will also be available as a licensed or SaaS service from the Business, complementing the core banking offering and strengthening the value proposition to small banks and PSPs.”

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