CheckFree to Buy Banking Software Maker Corillian
CheckFree, a firm that processes electronic payments, announced Wednesday it will acquire Internet banking software developer Corillian for $245 million, a 49 percent premium over Corillian's Tuesday closing stock price. CheckFree said the takeover would dilute its earnings in the current fiscal year and by a more modest amount in fiscal 2008.
Electronic payments processor CheckFree said Wednesday it will acquire Corillian, which provides Internet banking software and services, for about US$245 million, or $5.15 per share.
The price represents a 49 percent premium to the closing price of Corillian's stock on Tuesday of $3.45.
CheckFree said it will pay for the Portland, Ore.-based company with cash and revolving debt.
CheckFree also said the takeover would dilute its earnings in the current fiscal year and by a more modest amount in fiscal 2008.
The deal is expected to close around June 1.
Shares of CheckFree were off 13 cents to $41.49 in premarket trading Wednesday.
Shares of Corillian rose $1.58, or 45.8 percent, to $5.03 in premarket trading.
Both stocks trade on the Nasdaq.
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