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Trintech Group Acquires Checkline for $44 Million

Secure electronic payment solutions company Trintech Group plc is acquiring privately held U.K.-based Checkline plc, a transaction processing and electronic card payment company with expertise in mobile commerce, for about $44 million.

Trintech said the deal reinforces its commitment "to becoming the dominant global provider of secure e-payment infrastructure solutions for e-commerce and mobile commerce and establishes a significant foothold in the key UK market."

Checkline, with about 65 employees, has nearly 15 years of secure payment experience with expertise in software, communications and systems integration for merchant transaction management; general e-commerce and the emerging UK mobile commerce market, including electronic prepay top-ups for mobile phones.

Its product line includes the UK's first bank-approved mobile payment system to use GSM phone technology.

Key Checkline customers include American Express, HSBC, Bank of Scotland, Heathrow Express, the UK Post Office and Equifax. Checkline has strategic relationships with 20:20 (part of the Cauldwell Group), NatWest and De La Rue for the mobile commerce market, as well as with other systems providers such as Siemens Nixdorf, IBM, ICL and Micros Fidelio.

The deal involves the issuance of ordinary shares equivalent to 1.2 million American depositary shares of Trintech stock, $10 million in cash and a two-year performance earn-out of approximately $5 million. Trintech stock is trading in the $26 range, down from a 52-week high of about $75.

Trintech, with a dual base in Ireland and Silicon Valley, said it expects to be able to broaden its distribution channels as well as benefit from product integration of both companies' complementary technologies.

Trintech, founded in 1987, offers a complete range of payment software products for credit, debit, commercial and procurement card applications for consumer, merchant and financial institution use.



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