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CyberSource Acquires PaylinX Corp. in $138 Million Deal

E-commerce transaction services company CyberSource Corp. is acquiring privately held PaylinX Corp., a provider of multi-channel enterprise payment solutions in a stock deal valued at about $138 million.

CyberSource said the acquisition will allow it to provide businesses selling through multiple channels with an enterprise-wide payment software solution that has fully integrated access to its suite of e-commerce transaction services.

CyberSource agreed to issue approximately 8.4 million shares of its common stock, to acquire all of the outstanding stock of PaylinX, and will assume PaylinX's outstanding stock options and warrants. CyberSource stock closed Friday at $16.50.

The transaction will be accounted for as a purchase and is subject to stockholder and regulatory approval. John "Jack" McDonnell, Jr., PaylinX chairman and chief executive officer, is expected to join CyberSource's board of directors upon closing of the acquisition.

PaylinX, incorporated in 1996 with primary operations in St. Louis, markets a payment server as an enterprise-wide transaction processing platform that manages the authorization and settlement of credit card and other payment transactions in real-time through built-in connections with third-party processors and merchant-acquiring banks.

The scaleable PaylinX payment solution enables businesses to accept and process payment transactions through multiple enterprise sales channels - Web storefronts, call centers, interactive voice response (IVR) systems, in-store point-of-sale systems and kiosks -- seamlessly through a uniform payment architecture.

"As e-commerce continues its fast-paced growth, companies must develop a multi-channel business model, that incorporates both the Internet and off-line channels, to gain broad mindshare and greater marketshare," said Bill McKiernan, founder and CEO of CyberSource.

"By combining the technological expertise of CyberSource and PaylinX, as well as our companies' strong industry alliances, channel relationships and professional services capabilities, CyberSource is poised to deliver a commerce infrastructure that bridges the physical and virtual worlds."

The addition of a software solution to the CyberSource Internet Commerce Suite will give client businesses the option to deploy an in-house payment system or leverage CyberSource's existing suite of outsourced services or a combination thereof, the company said.

The CyberSource Internet Commerce Suite offers customer-controlled, real-time services including, payment services, tax services, risk management services, distribution control services and fulfillment management services.



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