EXHIBIT 99.1
FOR IMMEDIATE RELEASE
BROKAT ACQUIRES LEADING BROKERAGE SOFTWARE COMPANY
BROKAT ANNOUNCES THE ACQUISITION OF AUTOMATED FINANCIAL SYSTEMS AND OFFERS
CUSTOMERS AN E-BROKERAGE SOLUTION
SAN JOSE, CA, OCTOBER 12, 2000. Brokat AG (Frankfurt Neuer Markt: BRJ, Nasdaq:
BROA), one of the world's leading providers of software for e-banking and
e-business solutions, today announced the acquisition of New York-based
Automated Financial Systems, Inc. (AFS), a leading provider of proven Internet
and telephone-based brokerage systems. Under the terms of the agreement Brokat
will acquire 100 percent of privately held AFS in exchange for approximately
569,260 Brokat ordinary shares (equivalent to 1,138,520 American Depository
Shares) that will be issued from previously authorized capital. The transaction
is valued at approximately US$34.5 million, based on the closing price for
Brokat's ordinary shares of Euro 69.80 (US$60.61) on the Neuer Markt on October
11, 2000. Of this amount, approximately US$19.9 million in Brokat shares will be
held in escrow and released to the sellers of AFS only upon satisfaction of
certain performance-related events. The acquisition is subject to regulatory
approvals and other customary conditions.
The acquisition of AFS will complete Brokat's North American financial services
offering by incorporating brokerage functionality into its existing suite of
e-finance applications, which includes retail, small business, corporate and
mobile banking solutions. The AFS suite of brokerage products and services will
enable Brokat to offer a comprehensive solution for the trading of stocks,
options and
mutual funds via multiple channels. Brokat plans to mobile-enable the AFS
solution and integrate it onto Twister(TM), Brokat's open e-Services platform
and key product, allowing all financial services applications to exist on one
common architecture.
Spending by financial institutions on brokerage technology will increase at an
overall annual growth rate of 10 percent through 2003, predicts Celent
Communications, a Boston-based consulting and research firm dedicated to
e-commerce in financial services. "Offering customers stock trading has become a
differentiator for financial institutions. The acquisition of AFS strengthens
Brokat's financial services products and further solidifies its presence as a
leader in the market," said Octavio Marenzi, managing director of Celent
Communications. The June 2000 Celent report ranked AFS first among online
brokerage software vendors for number of customers live, and second for number
of end users.
"We are pleased to become part of a leading financial services provider," said
Keith Aufhauser, managing director, AFS. "Brokat's technology and infrastructure
will allow us to expand our products and services globally by delivering proven
application solutions on one of the most reliable and scalable platforms
available. AFS customers will benefit from the combined resources and
technologies of AFS and Brokat."
AFS complements Brokat's recently introduced European e-brokerage suite,
allowing Brokat to offer brokerage functionality tailored to the US and European
markets. AFS's 90 installed customers and user base of approximately 2.5 million
retail investors give Brokat an established brokerage customer base as it enters
the North American market. The addition of AFS will bring Brokat's customer base
of financial institutions to more than 2,100 globally.
Brokat has expressed a strong commitment to its North American expansion with
the recent acquisition of GemStone Systems, Inc. and Blaze Software, Inc. "Each
of these acquisitions has supplemented and
strengthened our core product Twister. Brokat is now able to offer a complete
e-finance solution on one open platform, giving us a competitive advantage in
North America. As a result, we are well positioned for rapid growth, in the
United States and worldwide," said Stefan Roever, CEO of Brokat.
-- MORE --
SECOND PAGE - BROKAT LEADING BROKERAGE SOFTWARE COMPANY
ABOUT BROKAT
Brokat is a leading provider of e-business software solutions worldwide. The
company is a global leader in the Internet banking market. Brokat's key product
is the modular e-services platform Twister. This software integrates existing IT
systems and applications in companies while securely linking them with
electronic channels such as the Internet and mobile communications. Twister
offers many features for Customer Relationship Management and Enterprise
Application Integration. Among the more than 2000 companies already using
Twister solutions are Allianz, Axa, Deutsche Bank 24, ABN Amro, Cable &
Wireless, Charter One, Consors, DBS-Bank Singapore, debitel, Schweizer Post,
SE-Banken and Toronto Dominion Bank. Brokat was founded in 1994 and has over
1200 employees in 16 countries. During the 1999 calendar year the company
achieved DM 94 million in sales. Brokat AG is headquartered in Stuttgart,
Germany with North American headquarters in San Jose, California. Information on
Brokat and its products can be found on the Internet at WWW.BROKAT.COM.
ABOUT AFS
Automated Financial Systems (AFS) is a leading provider of brokerage software
solutions. AFS develops and markets Prospero the proven Internet brokerage
system and Tempest the brokerage Interactive Voice Response (IVR) system. Today,
more than 90 Broker/Dealers use AFS to provide Internet trading, account status,
real-time quotes, and market research to their clients. AFS provides robust
Internet solutions, fast time-to-market and extensive professional services and
is available through an ASP model or for license. The AFS service bureau is a
highly scalable and reliable business option for any brokerage firm to get
online quickly and efficiently without the expenses or difficulty of developing,
and maintaining a proprietary system. AFS is headquartered in New York.
Additional company and product information can be found at
WWW.AUTOMATEDFINANCIAL.COM
FORWARD-LOOKING STATEMENTS AND ADDITIONAL INFORMATION
THIS PRESS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS THAT RELATE TO BROKAT'S
ACQUISITION OF AFS, INCLUDING THE PRODUCT AND SERVICES AND MARKET OPPORTUNITIES;
THE EXPECTED INCREASE IN SPENDING BY FINANCIAL INSTITUTIONS ON BROKERAGE
TECHNOLOGY; AND BROKAT'S ABILITY TO CAPITALIZE ON THE ACQUISITION IN THE
FINANCIAL SERVICES MARKET. THESE FORWARD-LOOKING STATEMENTS INVOLVE RISKS AND
UNCERTAINTIES, AND ACTUAL RESULTS MAY DIFFER MATERIALLY FROM EXPECTATIONS.
FACTORS THAT COULD AFFECT ANTICIPATED BENEFITS FROM THE ACQUISITION INCLUDE
BROKAT'S ABILITY TO SUCCESSFULLY INTEGRATE AFS'S OPERATIONS, TECHNOLOGY AND
EMPLOYEES, AND TO RETAIN ITS KEY EMPLOYEES, CUSTOMERS AND STRATEGIC ALLIANCES.
FACTORS THAT COULD AFFECT THE DEMAND FOR BROKERAGE TECHNOLOGY INCLUDE MARKET
ACCEPTANCE, TECHNOLOGICAL DEVELOPMENTS AND GENERAL BUSINESS AND ECONOMIC
CONDITIONS. FACTORS THAT COULD AFFECT BROKAT'S POSITIONING IN THE FINANCIAL
SERVICES MARKET INCLUDE THE ABOVE FACTORS AS WELL AS BROKAT'S ABILITY TO COMPETE
SUCCESSFULLY, PROTECT ITS INTELLECTUAL PROPERTY RIGHTS, AND ADAPT TO
TECHNOLOGICAL ADVANCES AND CHANGING INDUSTRY STANDARDS. ADDITIONAL INFORMATION
ON THESE AND OTHER RISKS AND UNCERTAINTIES RELATED TO THE FORWARD-LOOKING
STATEMENTS IS INCLUDED IN THE "RISK FACTORS--RISKS RELATING TO BROKAT'S
BUSINESS" SECTION OF BROKAT'S REGISTRATION STATEMENT (NO. 333-45430) ON FORM F-4
ON FILE WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION. THE FORWARD-LOOKING
STATEMENTS IN THIS PRESS RELEASE ARE BASED ON MANAGEMENT'S REASONABLE BELIEFS AS
OF THE DATE OF THIS RELEASE, AND BROKAT ASSUMES NO OBLIGATION TO UPDATE THEM TO
REFLECT SUBSEQUENT INFORMATION OR EVENTS.
THE BROKAT SHARES ISSUED IN THE TRANSACTION DESCRIBED IN THIS PRESS RELEASE HAVE
NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT AND MAY NOT BE
OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN APPLICABLE
EXEMPTION FROM REGISTRATION REQUIREMENTS.
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BROKAT AND TWISTER ARE TRADEMARKS OF BROKAT AG IN THE UNITED
STATES AND OTHER COUNTRIES. ALL OTHER TRADEMARKS ARE
PROPERTY OF THEIR RESPECTIVE COMPANIES.