Banking transactions solutions developer Fundtech Ltd. (Nasdaq: FNDT; TASE: FNDT) has signed a multiyear contract for its Global PAYplus payments solution with "a top 20 global bank". The company did not disclose the amount of the deal or the name of the bank, but it is reportedly Barclays Bank plc (LSE: BARC).
Barclays Bank is a longstanding Fundtech customer. The bank will initially use Global PAYplus in two operating regions before expanding its use to support global payment operations.
The importance that Fundtech attaches to the deal is hinted at by the fact that it held a conference call for investors after the announcement.
Fundtech today also announced its guidance for 2010. The company expects $132-135 million, reflecting 12.5-16% growth over 2009. It also expects GAAP-based earnings per share of $0.32-0.42 and non-GAAP earnings per share of $0.63-0.73.
The company reiterated its revenue guidance for the fourth quarter, which means $116.4-117.4 million revenue for 2009, down from $121 million in 2008.
Fundtech CEO Reuven Ben-Menachem founded the company. He said, "As you can see from our guidance, we expect double digit organic growth in 2010 as our large bank customers return to normal operating and budgetary levels. We believe that our competitive advantage in the large payment systems market will enable us to show good growth in 2010 and beyond."
IDB Holding Corp. Ltd. (TASE:IDBH) unit Clal Industries and Investments Ltd. (TASE: CII) owns 55.36% of Fundtech. Fundtech's share rose 6.8% on Nasdaq yesterday to $14.21, giving a market cap of $228 million. The share rose 3.4% by midday today on the TASE to NIS 52.07.
Published by Globes [online], Israel business news - www.globes-online.com - on January 7, 2010
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