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Bottomline Technologies Acquires Direct Debit Limited

^{Published on 2011-02-22 04:11:15 - Market Wire}
 

PORTSMOUTH, N.H.--([ BUSINESS WIRE ])--Bottomline Technologies (NASDAQ: EPAY), a leading provider of collaborative payment, invoice and document automation solutions, today announced the acquisition of Direct Debit Limited (DDL), a London-based provider of payments automation software for direct debits and receivables management for corporations, banks, financial institutions and government organizations.

"The DDL team is thrilled to be part of Bottomline"

The addition of DDL extends Bottomlinea™s global payments capabilities. By improving inbound cash flow and reducing days sales outstanding, customers enjoy lower financing costs and improved working capital management. Customers can access the solutions online using a Software as a Service (SaaS) model, or can deploy the solutions on-site.

The acquisition of DDL expands Bottomlinea™s transaction banking portfolio and allows banks to offer white-labeled receivables management solutions to their corporate customers. Bottomline helps banks differentiate their portfolio by offering transaction banking solutions to their customers, thereby enhancing relationships, driving transaction revenues and increasing profitability.

aWe welcome DDLa™s clients to Bottomline and look forward to demonstrating our commitment to their continued success,a said Rob Eberle, president and CEO of Bottomline Technologies. aThe addition of Direct Debita™s solutions is an important and valuable extension of our suite of global payments, invoicing and transaction banking solutions, offering corporations and financial institutions powerful technology that is flexible and easy to use.a

DDL provides payments and receivables automation solutions to some of the worlda™s leading enterprises. This transaction expands Bottomlinea™s relationships with major banks, including HSBC and RBS, and corporations such as The Associated Press, Cadbury Schweppes, La™Or©al and Manchester United. The combination also extends Bottomlinea™s existing relationships with Vocalink and Bacs.

aThe DDL team is thrilled to be part of Bottomline,a said Gerry Hill, managing director of Direct Debit Limited. aWea™re certain that Bottomline will continue to focus on the success of our customers and trading partners, and deliver further value with an enhanced portfolio of payment, receivables and transaction banking solutions.a

In addition, today Bottomline also announced it has purchased the principal assets of Business Information Technology Group (BITG), a leading Australia-based Bottomline distributor and channel partner focused on the corporate market. As part of the transaction, six employees from BITG will join Bottomline.

Bottomline expects the acquisitions to contribute approximately $500,000 and $1 million of revenue in the third and fourth quarters respectively and be dilutive by approximately 2 in both the third and fourth quarters, principally due to the impact of the accounting treatment of acquired deferred revenue. The transactions are projected to be accretive to core net income in fiscal 2012 and beyond.

About Bottomline Technologies

Bottomline Technologies (NASDAQ: EPAY) provides collaborative payment, invoice and document automation solutions to corporations, financial institutions and banks around the world. The companya™s solutions are used to streamline, automate and manage processes involving payments, invoicing, global cash management, supply chain finance and transactional documents. Organizations trust these solutions to meet their needs for cost reduction, competitive differentiation and optimization of working capital. Headquartered in the United States, Bottomline also maintains offices in Europe and Asia-Pacific. For more information, visit [ www.bottomline.com ].

Bottomline Technologies, Direct Debit Limited, BITG and the Bottomline Technologies logo are trademarks of Bottomline Technologies (de), Inc. which may be registered in certain jurisdictions. All other brand/product names may be trademarks of their respective owners.

Cautionary Language

This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are competition, market demand, technological change, strategic relationships, recent acquisitions, international operations and general economic conditions. For additional discussion of factors that could impact Bottomline Technologies' financial results, refer to the Company's Form 10-K for the fiscal year ended June 30, 2010 and any subsequently filed Form 10-Qs, Form 8-Ks or amendments thereto. Any forward-looking statements represent our views only as of today and should not be relied upon as representing our views as of any subsequent date. We do not assume any obligation to update any forward-looking statements.