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. . o l _ . "'T'" ~ T~"T-'-'AS 00069030 1197 OM900UP :,1TREASURY SERVICES CORP ' 1604 ARIZONA AVENUE I
SANTA 1-10NICA CII 901+01-0000lJ
The Daily Financial Services Newspaper
Internet: http://www.americallbanker.com
f tware G ian t Orac l e Buy ing Trea sury Serv i ce s C or p .
Tuesday, August 5 . 1 9_
MATT BARTHEL
tablishing a beachhead in the
ng market, Oracle Corp. said
day that it has agreed to buy
ury Services Corp. for $120 mil-
in cash.
easury Services; a developer of
management and profitability
urement systems, is the first in a
of components that Oracle is
ted to string together for a con-
ated marketing effort in thecial services field.
dwood Shores, Calif.-bascd Ora-
econd only to Microsoft among
cndent software companies,
already provides many banks with
large-scale data base systems. But the
$5.7 billion company is just getting
around to focusing on banking-spe-
cific software.
Making a 5120 million investment
clearly indicates "they are focused on
becoming a major software solutions
provider for large financial institu-
tions," said Neil Herman, equity ana-
lyst at Salomon Brothers.
Steve Perkins, senior vice president
and head of Oracle's worldwide
financial services unit, declined to
identify other bank technologyproviders the company is talkingwith.
But he said Oracle's moves in the
financial services market "will pick
up rapidly in pace" in the next few
weeks.
We've spent the last 14
hs looking at the financiales industry, looking at theof functionality, looking at
players in the market," Mr.
ns said.
e move into financial services
s at a crucial time in Oracle's
ving worked together for sev-
ears, Oracle and Treasury Ser-
executives expect the acquisi-
to go smoothly. Specifics of
ntegration plans should be
ble next month.
acle has set up a financial ser-headquarters in New York,
branches in London, Paris,
erdam, and Zurich.
asury Services will continue
rate from its Santa Monica,
base, and the company's
management will remain
Oracle officials said.
history. The company in June
announced with much fanfareOracle 8, the latest version of itsrelational data base software.
At the unveiling at Radio City
Music Hall in New York, Oracle
chairman and chief executive offi-
cer Lawrence J. Ellison said he
Treasury Services' president and
chief e.'Cecutiveofficer, John Dor-
man, becomes an Oracle vice pres-
ident and general manager of
financial services applications. He
reports to Mr. Perkins.
With about 160 e.rnployees and$32 million in annual revenue,
Treasury Services provides soft-
ware that helps banks balance their
quest for profits with the risk
posed by their actions.
expects faster, larger data bases to
help usher in "nothing less than ancw era of computing" - onebased on stripped-down desktopterminals called network comput-
ers.
In that vision, network comput-
ers would rely on remote data
Salomon Brothers' Mr. Herman
said Oracle was likely drawn to
Treasury Services' customer base.
The deal "overnight gives Oracle 80
major financial institutions world-
wide. That's important," he said.
Mr. Dorman, who along withother senior executives own most
of Treasury Services (Allte! Corp.
and General Atlantic Partners own
minority stakes), said the acquisi-
tion gives his company access to
sales and consulting resources it
needs to continue to grow."We concluded that the scale of
the challenges that the industry isfacing has evolved to a level ofcomplexity that really requires amajor worldwide technologyprovider," Mr. Donnan said. 0
bases for much of their processing
and storage, in contrast to conven-
tional personal computer llardwarerelying on disk drives.Treasury Services' flagship prod-
uct, the Treasury Services Evalua-
tion and Reporting (TSER) system,
is to be integrated with Oracl~ 8.
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