Hoping to deepen its hold in the financial services market,
has acquired privately held Eontec, a developer of software for retail banking, the company announced Tuesday.
The initial price for the acquisition is $70 million; additional payments of up to $60 million in 2005 are possible, depending upon the performance of the acquired assets within Siebel.
Excluding a one-time, merger-related charge of $3 million to $7 million, it is expected that the transaction will reduce second-quarter earnings by up to 1 cent per share. Earlier this month, Siebel told investors to
expect a second-quarter profit of 6 cents to 8 cents a share.
All 130 employees of the Charlotte, N.C.-based Eontec will join Siebel's retail finance division.
The purchase allows Siebel, a leading seller of customer relationship management software, to add branch teller and Internet banking systems to its line of banking products. For example, a new product called Siebel Branch Teller, ties together financial data and customer marketing data, making it easier for banks to sell new services or products to customers.
In recent trading, Siebel was down 4 cents, or 0.3%, to $11.59.