| August 26, 2004
Open Solutions Inc. Announces
Plans To Acquire Datawest Solutions
Inc.
GLASTONBURY, Conn., August 26, 2004
– Open Solutions Inc. (NASDAQ:
OPEN), a provider of integrated data
processing technologies for banks
and credit unions, today announced
that it has reached an agreement with
Canadian-based Datawest Solutions
Inc. (Datawest) (TSX: DS), a leading
provider of core data processing and
payment technology solutions in Canada,
on the terms of a cash offer by Open
Solutions to acquire all of the shares
in the capital stock of Datawest for
a total cash consideration of CDN$1.23
per Common Share (approximately US$0.95
at current exchange rates) for 29,824,126
Common Shares and CDN$2.60 per Preferred
Share (approximately US$2.00 at current
exchange rates) for 5,000,000 Preferred
Shares. This acquisition, which has
been approved by Datawest’s
Board of Directors and several major
shareholders, is subject to final
approval by Datawest’s shareholders.
Under the terms of the agreement,
this transaction is expected to close
in Open Solutions’ fourth quarter,
if the conditions to the offer are
satisfied. Open Solutions believes
that this transaction will enable
it to expand its product offerings
and market presence into the Canadian
and international marketplaces. Open
Solutions will operate Datawest through
a wholly-owned newly incorporated
Canadian subsidiary, and Datawest
will continue to be located and operate
its Banking Solutions data center
in Vancouver and its Payment Solutions
data center in Oakville (outside of
Toronto).
Open Solutions and Datawest both
serve the financial services marketplace
with an emphasis on providing institutions
with a distinct technological, service
and competitive advantage. While Open
Solutions actively serves both the
U.S. community banking and credit
union industries, Datawest’s
core data processing business primarily
serves the Canadian credit union marketplace.
In addition, Datawest’s payment
business manages Canada’s largest
ATM network.
“We believe that the recommended
offer by Open Solutions for Datawest
will provide us with an excellent
opportunity to continue our success
in the Canadian marketplace,”
said Darryl J. Yea, Datawest Chairman
and CEO. “Open Solutions is
highly recognized in the financial
services arena and has demonstrated
a focused commitment to meeting the
technological and service needs of
the industry and their clients. Currently,
there are very few system options
available in Canada that take advantage
of the types of open platform technologies
that Open Solutions provides. This
transaction will allow us to accelerate
our promise of investigating and delivering
advanced technology, expanded features
and new system alternatives to our
current and future clients. We are
looking forward to joining and working
with Open Solutions as we continue
to serve the needs of the financial
services industry.”
Open Solutions intends to leverage
each company’s strengths and
experience to develop additional product
offerings, new technologies and applications.
“We are very pleased to be
able to announce today our intention
to acquire Datawest Solutions Inc.”
said Open Solutions Chairman and CEO,
Louis Hernandez, Jr. “This acquisition
will enable our organization to further
expand our market presence and extend
our reach within the financial services
sector. In all of our acquisitions,
we seek to add key strategic organizations
that will allow us to meet our long-term
strategic goals, complement our own
organic growth, culturally fit into
our organization and enable us to
better serve the financial services
industry. Datawest, with a similar
business philosophy, product offerings,
market vision and a desire to proactively
serve the needs of its clients and
the marketplace, is clearly such an
organization. All of us at Open Solutions
are looking forward to welcoming Datawest’s
employees and clients into the Open
Solutions family.”
About Datawest Solutions
Inc
Datawest Solutions Inc. provides innovative
banking and payment technology solutions.
Datawest’s Banking Solutions
Group is a principal provider of outsourced
banking technology to Canadian credit
unions, integrated with advanced phone
and Internet Banking solutions and
web-based customer relationship management
(CRM) and loans origination systems.
The Payment Solutions Group manages
Canada’s largest ATM network
and develops and delivers electronic
payment products and services, including
fast, secure ATM and POS systems and
electronic funds transfer transaction
processing, device management and
monitoring. Datawest also provides
professional services for implementation
of banking and payment systems in
major financial institutions and other
financial services organizations.
Datawest is a public company traded
on the Toronto Stock Exchange under
the symbol “DS”. More
information can be found on Datawest’s
corporate web site at www.datawest.ca.
About Open Solutions
Open Solutions Inc. offers a fully
featured strategic product platform
thatintegrates core data processing
applications, built on a single centralized
Oracle relational database, with financial
accounting, Internet banking, cash
management, electronic commerce, lending
origination and imaging solutions.
OSI's full suite of products and services
allows banks and credit unions to
better compete in today's aggressive
financial services marketplace, expand
and tap their trusted financial relationships,
client affinity, community presence
and personalized service. For more
information about Open Solutions,
or its financial product line
Contact: Marvin (Mickey) Goldwasser Open Solutions
Inc. 860.652.3153
mgoldwasser@opensolutions.com
www.opensolutions.com
.
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