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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