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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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