Though Misys has a lending module within its core Midas banking application, it has never had a product that is capable of capturing new business in this area. It feels that IQFS’s Loan IQ product now gives it that capability. The company, which had revenue of $22m in 2003, has 29 clients predominately in North America and Misys believes that it can substantially increase this through its worldwide sales network.
Misys said that the global commercial loans market was under-penetrated, with banks either using legacy systems or software urgently in need of upgrades.
Misys, the UK’s largest software company, has suffered from the reluctance of banks to upgrade their systems and while it has a reliable revenue stream from annual licenses it badly needs products to provide new sources of growth.
The acquisition of IQFS is similar to that in April 2003 when Misys paid $13m cash to Citicorp subsidiary Crossmar Inc for the Crossmar Matching Service (CMS) to expand operations as an application service provider. CMS provided an independent confirmation matching service aimed primarily at foreign exchange/money market transactions between banks.
This article is based on material originally produced by ComputerWire.
