Weiland Financial Group, which provides bank account analysis software to both corporate and financial institutions, has been acquired by Open Solutions, a vendor of software systems for financial institutions. The terms of the transaction were not disclosed.
Weiland will continue to offer its products on a stand-alone basis. Open Solutions, which was taken private in 2006 by Providence Equity Partners and the Carlyle Group, will integrate Weiland's products for banks with its own.
Open Solutions sells its bank solutions mostly to small and midsize banks and credit unions, while Weiland targets the large banks that dominate the cash management market and large corporations.
"The banking side of the Weiland business was extremely interesting to us, particularly as it ties into our core customers and our road map going forward," says Ron Young, vice president of product strategy at Open Solutions. Young says the small to midsize financial institutions Open Solutions deals with are increasingly focused on providing services to companies. "It's an expansion of their business and certainly a place where they can derive fee revenue," he adds.
While Open Solutions already provides banks and credit unions with functionality related to offering banking services to businesses, "we certainly want to bolster that over time," Young says. "The account analysis expertise and products from Weiland are really going to give us a heck of a boost as far as offering that capacity."
While large banks dominate the business of providing cash management services, "you'd be surprised how many smaller banks are moving toward having a fuller offering of cash management services and are billing that through rather sophisticated account analysis statements," says Dan Gill, product manager for corporate systems at Weiland.
Employees of Bannockburn, Ill.-based Weiland will become employees of Open Solutions. But "there will still be property and personnel in Illinois," says a spokesman for Open Solutions, whose headquarters are in Glastonbury, Conn.
The transaction is the second in recent months involving a company that provides electronic bank account management software; in April, Wall Street Systems announced that it had acquired Speranza.
To read about the benefits clothing retailer Chico's realized from another provider's bank account analysis software, see Saving Trees and Fees.