Probanx Acquisition – Core Banking Platform Business
Melbourne, 19th September 2018 – Australian Securities Exchange and Frankfurt Stock Exchange cross listed iSignthis Ltd (ASX : ISX | FRA : TA8), the leading payment and identity technology company (the “Company”), is pleased to announce that it has completed acquisition of 100% of the issued capital of Cyprus based, Probanx Information Systems Ltd (‘Probanx”).
Probanx has been in operation for more than a decade, and services more than fifteen (15) prudentially regulated entities across the EU, Asia and North America, with regards to their core banking platform requirements.
Probanx revenue model is predominantly based upon a software licensing model with annual maintenance fees, with licensed software installed on local servers operated by the banking client. The Company expects that the Probanx revenue model can be readily adapted to also include a Software as a Service (SaaS) model, which can be hosted as part of the Company’s secure cloud infrastructure. SaaS services command higher fees, as they are ready to use without the need for infrastructure and case by case certifications.
Probanx core banking services have recently been third party certified, and the Company intends to augment the Probanx offerings by adding its card processing modules as they become scheme certified later this year and next, including schemes such as Visa, Mastercard, JCB and others.
In addition to the future SaaS licensing opportunities around core banking and card processing SaaS, Probanx is a strategic acquisition for the Company as it provides proven and certified systems as follows;
Core Banking Platform
E-banking (Client Portal)
Mobile Banking Application
Loans & Mortgages Module
IBAN Validation API
Integration between ATM and POS switches, and the CorePlus Banking System.
Supports English, French, German, Italian, Greek, Spanish and Hebrew
Wire Payments – SWIFT, SEPA and Earthport Integration
The Company’s EMA services will be integrated to the above certified services as soon as readily possible, allowing our business customers and merchants access to the rich features of the core banking platform. The Client portal will allow retail customers to view their ISXPay IBAN accounts online and via mobile.
Probanx shall operate as an independent business unit, sharing legal, treasury, and HR functions with the parent and sister companies, with Mr Chris Georgiou staying on as a director and managing the Company.
Probanx is expected to deliver a positive EBIT contribution to the iSignthis group for FY2018.
The Company has acquired Probanx for €300,000 cash, with €100,000 in ISX ordinary shares due in six months, and an earn out commission against future receipted sales closed within the next three (3) months.
John Karantzis, CEO of iSignthis said:
“We are delighted to have concluded the acquisition of Probanx Information Systems, which we believe is an excellent addition to the overall iSignthis SaaS solution. ISXPay’s certified Tier 1 card processing software will also conversely be available as a SaaS service from Probanx in due course, complementing the core banking offering and strengthening the value proposition to small banks and PSPs. The addition of a proven core banking platform will also allow our operating arm, ISXPay, to grow its eMoney Account (EMA) products rapidly, and to provide enhanced services to its customers.”
iSignthis®, ISXPay®, Probanx®, Flykk® & Paydentity™ are registered trademarks of iSignthis Ltd. iSignthis Ltd ABN 93 075 419 715 operating subsidiaries include iSignthis eMoney Ltd HE348009 (CY) , Authenticate BV KvK 62744968 (NL), Authenticate Pty Ltd ABN 49 600 573 233 (AU), Probanx Solutions Ltd (CY) & UAB Probanx Solutions (LT). iSignthis eMoney Ltd, trading as Flykk and ISXPay, is authorised by the Central Bank of Cyprus # 220.127.116.11 as an E.E.A Monetary Financial Institution. ℗ Patent applications pending/granted in Africa, Australia, Asia, The Americas, Europe and Oceania. WIPO Patent Application Nos: WO2011/120098, WO2016/094954, WO2016/101027, WO2016/187662, WO2018/090099, WO2018/170548