Siebel buys banking software firm Eontec

Siebel Systems has acquired Dublin-based banking software developer Eontec to add transactional capabilities to its banking CRM...

Siebel Systems has acquired Dublin-based banking software developer Eontec to add transactional capabilities to its banking CRM and analytics offerings.

The company paid $70m cash for the company, and will pay up to $60m more in cash throughout 2005 if revenue and customer-satisfaction targets are met.

Eontec developed a Java-based suite of applications for handling branch, call centre and internet transactions. Its nine customers - three of which are also Siebel customers - include Commonwealth Bank of Australia, which supports three million customers on Eontec's Internet banking system, and Canada's CIBC, which runs its teller systems in 1,200 branches on Eontec's software. 

Siebel and Eontec began working together at the end of last year at the behest of several joint customers, according to Richard Campione, general manager of Siebel's financial services and public sector group. Their integrated software, available now, gives Siebel a fairly complete package of banking transaction, sales, service and analytics products.

Siebel sees the banking industry as one in the midst of billions in IT spending as companies replace ageing systems and build infrastructure for new channels such as online banking. Executives said in October that a new customer console system for branch banks would be a major addition to Siebel's 7.7 software release, due shortly.

That console is now linked with Eontec's software and part of Siebel's expanded banking product lineup, Campione said. 
Siebel's competitors in the banking market include Fidelity National Financial, which provides banking technology systems and services to institutions that outsource those functions, and S1 Corp., which sells a variety of multichannel financial services applications.

Meanwhile, Siebel Systems and NCR's Teradata division are deepening their existing alliance and optimising Siebel's analytics software for use with Teradata's data warehouse.

Siebel's 150 analytics applications will generate Teradata-specific SQL, allowing customers to mine data from Teradata's warehouse more easily, and in greater detail. The integration is now available to initial customers and will be generally available in the third quarter.

The companies will also release an integration methodology for connecting Teradata's industry-specific data models with Siebel's analytics software. Teradata's models are available for industries including financial services, retail, travel, manufacturing and health care.

Stacy Cowley writes for IDG News Service

Read more on Business applications