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CheckFree Buys U.K. Firm for $56 Million

Accurate Software makes business management and intelligence products.

CheckFree

(CKFR)

, a provider of financial electronic commerce products, said it acquired U.K. firm

Accurate Software

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for about $56 million in a bid to expand the company's global operations.

Accurate, a provider of reconciliation, exception management, workflow and business intelligence products, is based in Wokingham, England, and has offices in Atlanta, New York, London, Luxembourg and Sydney. Accurate will become part of CheckFree's software division. The acquisition was completed on April 30.

For the fourth quarter and fiscal year ending June 30, CheckFree expects the acquisition to contribute revenue of about $3 million, while charges will lower GAAP earnings by about 2 cents a share. The purchase will be essentially neutral to underlying earnings for the fiscal year, CheckFree said.

CheckFree now expects fourth-quarter revenue of $197 million to $202 million, and GAAP earnings of 13 cents to 15 cents a share. Excluding items, underlying earnings should be 37 cents to 39 cents a share. For fiscal 2005, the company forecast GAAP earnings of 51 cents to 53 cents a share, and underlying earnings of $1.41 to $1.43 a share.

The company expects the Accurate acquisition to be neutral or modestly add to earnings for the fiscal year ending June 30, 2006.