SOURCE: eFunds Corporation

May 05, 2005 07:00 ET

eFunds Corporation to Acquire National Check Protection Services, Inc.

Deal Expands Footprint in New England Market and Broadens Company's ChexSystems(SM) Solution with Enhanced Consumer Data

SCOTTSDALE, AZ -- (MARKET WIRE) -- May 5, 2005 -- eFunds Corporation (NYSE: EFD) announced today that its wholly owned subsidiary, Chex Systems, Inc., has signed a definitive agreement to acquire substantially all of the assets of National Check Protection Services, Inc. (NCPS), and its affiliates. NCPS is one of the nation's largest privately held providers of new account verification, employment screening and due diligence investigation services for the financial services and government industries. The base purchase price of approximately $20 million, which is subject to working capital adjustments and holdback arrangements, will be paid in cash at closing and is expected to occur in the second quarter of 2005 subject to the satisfaction of customary closing conditions.

The NCPS acquisition will deepen eFunds' market footprint into tier one financial institutions while helping to accelerate the delivery of new risk management services to the Northeast market. The acquisition will also allow the Company to add depth to its ChexSystems(SM) new account offering by contributing enhanced bankruptcy and criminal data to DebitBureau®, the proprietary database behind the risk management and fraud components of the product suite.

"This acquisition is another step in the execution of our long term strategic plan," said Rahul Gupta, SVP and division executive at eFunds. "As eFunds continues to expand its leading market position in the account origination and risk management segment, we are also expanding sales opportunities for our entire suite of account lifecycle solutions. Our banking customers in the Northeast can now come to one trusted provider for a full suite of risk management, fraud prevention, electronic payments and related outsourcing solutions."

According to an FTC Identity Theft Survey, fraud accounted for more than $32 billion in losses at the new account desk in 2004 alone. As the instances of fraud continue to rise, the need for deeper and more accurate data on consumers continues to drive the risk management agenda for financial institutions across the country.

"Both companies are known for deep domain expertise in identity verification, fraud and risk management at the new account desk," said Robert J. Zammito, owner of NCPS. "Combining our respective strengths will give our customers access to a comprehensive and predictive fraud prevention platform that will help them better mitigate fraud at the new account desk, and find potential new streams of revenue by leveraging the data for up-sell and cross-sell opportunities."

About NCPS

NCPS is one of the nation's leading providers of information services in the areas of New Account Verification, Employment Screening, and Due Diligence Investigations.NCPS' unique and comprehensive approach to new account verification includes the ability to report financially related criminal information and significantly more categories of negative information than commonly available. NCPS has worked with national and international companies in a wide range of industries, in addition to financial institutions, in its employment screening division. More information can be found at

About eFunds

eFunds Corporation is an industry leader with nearly 30 years of experience and expertise in electronic payments and risk management. eFunds offers electronic funds transfer software and processing, risk management and related outsourcing solutions to financial institutions, electronic funds transfer networks, retailers, telecommunications providers, and government agencies around the world. Committed to providing excellent customer service and award-winning products, eFunds enables its clients to reduce transaction and infrastructure costs, detect potential fraud and enhance relationships with their customers.

Statements made in this release concerning the Company's or management's intentions, expectations, or predictions about future results or events are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are necessarily subject to risks and uncertainties that could cause actual results to vary from stated expectations, and such variations could be material and adverse. Factors that could result in such a variation include, but are not limited to, the inherent unreliability of earnings and revenue growth predictions due to numerous factors, including many beyond the Company's control, potential difficulties, delays and unanticipated expenses inherent in the development and marketing of new products and services, competitive factors, and the numerous risks and potential additional costs, disruptions and delays associated with the establishment of new business initiatives. Additional information concerning these and other factors that could cause actual results to differ materially from the Company's current expectations is contained in the Company's Annual Report on Form 10-K for the period ending December 31, 2004.

eFunds Corporation
Gainey Center II, Suite 300
8501 North Scottsdale Road
Scottsdale, AZ  85253

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