724 Solutions Announces Close of Acquisition of TANTAU Software
Combination creates premier global provider of infrastructure and application software for Financial Institutions, enabling secure mobile transactions
Toronto, ON (January 17, 2001) - 724 Solutions Inc. (NASDAQ: SVNX and TSE: SVN), a leading provider of Internet infrastructure software enabling clients to deliver services involving transactions such as online banking, brokerage and m-commerce, announced the closing of its acquisition of TANTAU Software Inc., a provider of software platforms that enable enterprises to conduct high-volume, secure, mobile transactions.
The deal combines the complementary strengths of both organizations to form a clear leader in delivering scalable, secure mobile transaction capabilities. The company will operate under the name 724 Solutions Inc., and its combined customers have more than 270 million customer relationships worldwide. The deal substantially extends 724 Solutions' global presence and is expected to accelerate the company's technology roadmap, its path to profitability and its entry into new verticals.
Under the terms of the agreement, 724 Solutions acquired TANTAU for 17,091,679 common shares and assumed options to purchase an additional 1,908,182 common shares. In addition, 724 Solutions assumed an additional 131,063 options for those employees who joined TANTAU between November 29, 2000 to January 17, 2001. As of the date of this announcement, 724 Solutions shareholders will own approximately 68 per cent of the combined company and TANTAU shareholders will own approximately 32 per cent, on a fully diluted basis.
On Wednesday, January 24, at 5.30 p.m. Eastern Time, the combined company will hold its fourth quarter investor conference call to provide an update on merger integration, as well as financial comment and operating metrics for 2000. The details of the investor conference call are as follows:
January 24, 2001, 5:30 p.m. EST (2.30 p.m. PST)
Dial-in numbers:
1-800-387-0276 (North America)
1-416-641-6662 (Outside North America)
Replay:
1-800-558-5253 (North America) Access code: 17517429
1-416-626-4100 (Outside North America) Access code: 17514465
An audio replay will be available until 11:30 p.m. EST Sunday, January 28, 2001.
About 724 Solutions Inc.
724 Solutions is a premier Internet infrastructure solutions provider to financial institutions, enabling them to offer personalized and secure mobile banking, investment, and commerce services across a wide range of Internet-enabled wireless and consumer electronic devices. The company provides end-to-end customer support through its global application hosting and contact center services. 724 Solutions' customers comprise world-class financial institutions whose combined customer bases total more than 180 million consumers. 724 Solutions' common shares are listed on the NASDAQ National Market (SVNX) and The Toronto Stock Exchange (SVN). Headquartered in Toronto, Canada, the company has offices in London, Paris, Chicago, San Francisco, Santa Clara, Sydney, and Tokyo. For additional information visit www.724.com.
About TANTAU
TANTAU Software Inc. is a global provider of software and professional services that enable enterprises to conduct high-volume, secure, mobile e-commerce transactions while maintaining direct access to their customers. Headquartered in Austin, Texas, TANTAU is a global company with development and sales offices around the world, including Australia, Finland, Germany, Japan, the Netherlands, Switzerland, the United Kingdom and the United States. More information can be found on TANTAU's Web site at www.tantau.com.
This press release contains statements that are forward-looking as that term is defined by the United States Private Securities Litigation Reform Act of 1995. These statements include the statements herein about the business and affairs of 724 Solutions and TANTAU Software after the completion of the merger, including the companies' combined competitive position, product offerings and customer base; and the companies' improved operating performance, are based on current expectations that are subject to risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. In particular, the following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements:; the risk that 724 Solutions' and TANTAU Software's businesses will not be integrated efficiently and successfully; costs related to the merger; any delay, inability or difficulties encountered in increasing 724 Solutions' and TANTAU's combined revenues from their existing and new contracts; demand by financial institutions and consumers for mobile banking and brokerage services; competitive products and pricing; any inability of 724 Solutions and TANTAU to offer enhanced product offerings; any ability that we may have to manage and grow our expanding international operations, and other factors. Readers are referred to 724 Solutions' filings with the US securities Exchange, including its Registration Statement on Form F-4, its annual report filed on Form 20-F, its Form F-4 Registration Statement filed in connection with the Tantau acquisition and its reports furnished to the Securities and Exchange Commission under cover of Form 6-K for a more complete description of these risks and uncertainties.
For more information, contact:
Avichai Levy, VP Marketing Mobixell Networks
Tel: +972 544 666 785
Avichai.levy@mobixell.com
Kirsten Scott and Kim Smith, éclat Marketing
Tel: +44 (0)1276 486000
mobixell@eclat.co.uk
