(NYSE:FTU) will be using the Global ACCESS.Pro clearing and cash management solution made by
First Union will use the Fundtech system to establish a single Internet-based system to replace the six different systems it has been using.
Fundtech develops e-payments and Internet banking solutions. It estimates the deal to be worth more than $10 million over a year.
also bought a Fundtech system in a deal believed to be worth between $3 million to $5 million. Fundtech assesses the Citibank deal to be worth tens of millions over the long term.
A few weeks ago, investment house Lehman Brothers (NYSE:LEH) estimated Fundtech's revenues for 2001 to be $65.8 million. It predicted earnings per share of 60 cents, sharply below its previous forecast of $1.12. But the investment house reiterated its Strong Buy rating. Investors were not impressed. Since Fundtech released its disappointing results for the fourth quarter of 2000, its shares have lost 45% to $5.9, lowering the company value to $85 million.