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Capital
Stream to Buy Decision Systems International? DSI, owned by a British company, has been in financial trouble in the United Kingdom as reported by Leasing News the last
year. Several software companies have made bids to purchase the company, but insiders tell us there were too many stipulations and problems. But it now appears Capital Stream will be the winner of the bidding. Close to 50% of the
share holders have agreed to the purchase. The general stockholder
voting will begin shortly and this has to be concluded in 20
business days according to UK rules. There is a second letter of intent at a higher price but
it is not a firm offer, so it looks like this is the deal. Leasing News was
given the name of the firm, but we are bound not to reveal it at this
time. http://www.prices.londonstockexchange.com/info.asp?sedol=0216874 Wired Capital management merge/acquired Capital Stream, basically replacing the entire management ( John Kruse was the last
to go and he has started a new company along with many of the original Capital Stream founders—no software---featuring auxiliary financing products for leasing companies to refer for extra income such as “accounts receivable, factoring,
mortgages, etc. He plans a major announcement the end of June.) October 23, 2002 the official announcement was made that
CapitalStream Appoints Kevin Riegelsberger as CEO. They also announced
the Strategic Acquisition of
WiredCapital and Closes $10 million in Equity Financing http://www.capitalstream.com/news/press/101002.asp 26 employees were let go.
Part of the press release from Capital Stream stated, “"Kevin has previously built a successful financial
software operation from a startup to a profitable public company, and he has
acquired the versatile leadership skills that can only come through the experience
of leading an organization through each phase of growth." Before joining WiredCapital as President & CEO, Kevin
founded one of the industry leading financial software application providers - Platinum Software Corporation (now called Epicor). Platinum grew from a 7-person startup to a publicly traded company with over $260m in revenue. During his 15 years at Platinum, Kevin oversaw operations, sales and technology development to create the 8th largest enterprise software company in the world. He
also foresaw the international opportunity and built a worldwide distribution channel generating over $100m in annual revenue from operations in
all major international markets. In March of this year, a joint marketing agreement was announced with Ivory Consulting: http://www.leasingnews.org/archives/March%202003/03-03-03.htm#capital Here is a press release from Capital Stream, not naming Decisions Systems, but announcing that they have raised money to for
“strategic industry acquisitions:” In an interview, Riegelsberger said his experience with accounting software was a very good background to understand the financial and leasing market software needs. #### Press Release CapitalStream Secures $21 Million for Strategic Acquisitions
New Funding Fuels Company's Leadership Role in Offering Enterprise Software
to Financial Institutions SEATTLE, WA CapitalStream(tm), a pioneer in front office automation solutions
for commercial finance operations, today announced it has raised
over $21 million in investor funding, designated for strategic industry acquisitions. Backed by investor firms FTVentures, Bank of
America, Polaris Venture Partners, Mobius Venture Capital, Voyager
Capital, and The Benaroya Company, CapitalStream will acquire technology
and software providers that expand CapitalStream's product offering to
its target market - the small business, equipment and commercial finance
operations of financial institutions and other finance providers. "Financial institutions are trying to integrate numerous
stand-alone point solutions in order to streamline operations, grow revenue
and meet customer demands for integrated products and services,"
said Kevin Riegelsberger, CapitalStream's president and CEO. "CapitalStream's FinanceCenter(tm) product line is already designed to link
with these various systems to provide a complete Front Office platform.
By acquiring these point solutions we minimize the risk and
maximize the value to our clients by more closely integrating these products
and offering a single source for support." CapitalStream's acquisition
strategy is designed to provide a broader range of products and services,
expanding the company's established front office automation product
line to include complimentary products such as back office, accounting and servicing solutions along with other point
solutions used in commercial finance. "CapitalStream's experienced management team has demonstrated
an ability to acquire and integrate software operations, close significant
projects and grow revenue - even in today's tough economic environment,
" said Tony Audino, Chairman of the Board at CapitalStream and
Managing Director of Voyager Capital. "That track record, combined with the excellent business
opportunities available in the market today, allows us to leverage our investment in
CapitalStream even further by increasing the scope of their products and
services through acquisition." The funds will be used specifically for acquisition of businesses
and products and are contingent upon CapitalStream identifying and closing
prospective acquisitions that meet the investment criteria. About CapitalStream Established in 1995, CapitalStream develops
financial front office automation solutions that enable banks and finance
companies to transform paper-based, stand-alone operations into integrated,
streamlined finance supply chains. CapitalStream solutions streamline
application processing, deal structuring, credit analysis and document
generation to rapidly originate leases, loans, lines and cards. As an established industry leader, CapitalStream has helped
many small business lending, equipment finance and commercial lending
operations to improve relationships with customers and partners, streamline
operations, reduce risk and achieve significant revenue growth. For more information, visit CapitalStream's Web site at www.capitalstream.com <http://www.capitalstream.com>.
Contacts: Karen Thorsen CapitalStream, Inc. 206-548-1703 karent@capitalstream.com mailto:karent@capitalstream.com The Friday closing on the stock had this announcement about
the Capital Stream bid: http://two.leasingnews.org/temporary/capital.htm About Capital Stream:
http://www.leasingnews.org/elease/software.htm About International Decision Systems from the IDS Website:
With nearly three
decades of industry-specific expertise and track record in leasing accounting,
International Decision Systems (IDS) is the global market leader in
developing lease accounting, portfolio management, and wholesale/floorplan
financing software and services. Over 500 independent, bank-related,
captive leasing and financial services companies worldwide use IDS’
stable, scalable and robust end-to-end lease accounting software
to streamline and automate the entire leasing life cycle. Lessors also use IDS’ software to leverage the
Internet’s speed and flexibility for improving service to customers,
achieving greater internal efficiencies and closing deals faster. IDS also has the industry’s largest global consulting, implementation,
technical support organizations that provide incomparable service from
offices located in from offices in the United Kingdom, North
America (Boston and Minneapolis), Australia (Sydney), and Southeast
Asia (Singapore). IDS’ parent company,
Group plc companies, is publicly traded on the London Stock Exchange
(IDGL). For additional information about International Decision
Systems and IDS Group plc, visit www.idsgrp.com. Here is a history
of their stock:
http://two.leasingnews.org/images/IDS-Chart.jpg Here is one of the
Capital Stream stories for further background: http://www.leasingnews.org/archives/October2002/10-31-2002.htm#takeover |
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