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The Daily Financial Services Newspaper Internet: http://www.americallbanker.com

Tuesday, August 5. 19_

Software Giant Oracle Buying Treasury Services Corp. • By MATT BARTHEL

already provides many banks with large-scale data base systems. But the Establishing a beachhead in the $5.7 billion company is just getting banking market, Oracle Corp. said around to focusing on banking-speMonday that it has agreed to buy cific software. Treasury Services Corp. for $120 milMaking a 5120 million investment lion in cash. clearly indicates "they are focused on Treasury Services; a developer of becoming a major software solutions risk management and profitability provider for large financial institumeasurement systems, is the first in a tions," said Neil Herman, equity anaseries of components that Oracle is lyst at Salomon Brothers. expected to string together for a conSteve Perkins, senior vice president centrated marketing effort in the and head of Oracle's worldwide financial services field. financial services unit, declined to Redwood Shores, Calif.-bascd Oraidentify other bank technology providers the company is talking cle, second only to Microsoft among with. indepcndent software companies, But he said Oracle's moves in the financial services market "will pick up rapidly in pace" in the next few weeks.

"We've spent the last 14 months looking at the financial services industry, looking at the areas of functionality, looking at the players in the market," Mr. Perkins said. The move into financial services comes at a crucial time in Oracle's

history. The company in June announced with much fanfare Oracle 8, the latest version of its relational data base software. At the unveiling at Radio City Music Hall in New York, Oracle chairman and chief executive officer Lawrence J. Ellison said he

expects faster, larger data bases to help usher in "nothing less than a ncw era of computing" - one based on stripped-down desktop terminals called network computers. In that vision, network computers would rely on remote data

Having worked together for several years, Oracle and Treasury Services executives expect the acquisition to go smoothly. Specifics of the integration plans should be available next month. Oracle has set up a financial services headquarters in New York, with branches in London, Paris, Amsterdam, and Zurich.

Treasury Services' president and chief e.'Cecutiveofficer, John Dorman, becomes an Oracle vice president and general manager of financial services applications. He reports to Mr. Perkins. With about 160 e.rnployees and $32 million in annual revenue, Treasury Services provides software that helps banks balance their quest for profits with the risk posed by their actions.

Salomon Brothers' Mr. Herman said Oracle was likely drawn to Treasury Services' customer base. The deal "overnight gives Oracle 80 major financial institutions worldwide. That's important," he said. Mr. Dorman, who along with other senior executives own most of Treasury Services (Allte! Corp. and General Atlantic Partners own minority stakes), said the acquisition gives his company access to sales and consulting resources it needs to continue to grow. "We concluded that the scale of the challenges that the industry is facing has evolved to a level of complexity that really requires a major worldwide technology provider," Mr. Donnan said. 0

.Treasury Services will continue o operate from its Santa Monica, :alif., base, and the company's ;enior management will remain ntaet, Oracle officials said.

bases for much of their processing and storage, in contrast to conventional personal computer llardware relying on disk drives. Treasury Services' flagship product, the Treasury Services Evaluation and Reporting (TSER) system, is to be integrated with Oracl~ 8.