SunGard Buys Payformance Unit

SunGard has acquired the corporate payments unit of Payformance Corp., a Jacksonville, Fla.-based provider of payment processing solutions for corporations and health care organizations. No financial terms were disclosed. SunGard was acquired in 2005 by seven private equity firms, while Payformance has raised around $26 million in VC funding from firms like ABS Capital Partners, Wachovia Capital Associates and Stonehenge Capital. Get more info.

 

PRESS RELEASE

SunGard (http://www.sungard.com) today announced that it has acquired the corporate payments division of Payformance Corporation (http://www.payformance.com), a Jacksonville, Florida based company that provides payment processing solutions for corporations and health care organizations. The acquisition, the terms of which were not disclosed, is not expected to have a material impact on SunGard's financial results.

The acquired business will become part of SunGard's Banks & Corporations business and will be branded under SunGard's AvantGard brand (http://www.sungard.com/avantgard). This acquisition is the latest addition to the AvantGard Collaborative Financial Management platform, helping the ecosystem of suppliers, buyers, banks and trading partners to remove barriers and inefficiencies in the financial supply chain.

Last year, SunGard integrated the Payformance technology with its AvantGard Trax payment factory and SWIFT connectivity solution. By combining Payformance's online processing with AvantGard Trax, SunGard offers a comprehensive accounts payable solution that delivers bank connectivity, domestic and international payments, online remittance details, automatic payment notification and check printing capabilities. Corporations can efficiently execute all types of payments including SWIFT, ACH, payment cards and other formats.
 
The solution also provides an easy means for corporations to migrate away from costly paper checks towards more efficient electronic payment formats. Designed to work with a company's existing banking relationships, the solution is non-proprietary and can plug in to virtually any accounting system. The integrated offering helps customers reduce transactional costs, improve the management of payment information, exceptions, and statement flows, and comply with regulations.

“The AvantGard Collaborative Financial Management platform is the backbone for financial supply chain management. Not only can our customers gain a single view of cash and risk, they can also improve outdated, inefficient and poorly protected finance activities such as business-to-business payment processing,” said Ken Dummitt, president of SunGard's Banks & Corporations business. “Incorporating Payformance last year allowed us to deliver our integrated solution to early adopters in this space. This acquisition allows us to further this innovation, expanding the breadth of our Collaborative Financial Management platform.”

About Payformance Corporation
Payformance Corporation is one of the industry's most innovative providers of Electronic Funds Transfer and Electronic Remittance Advice solutions. Its flagship product, PaySpan Health, builds on the company's more than 23 years of experience in developing payment solutions. By automating the last phase of the healthcare claims process