Cass Information Systems to acquire web-enabled utility payment division
Cass Information Systems has entered into a letter of agreement to acquire business and substantially all assets of 'The Utility Navigator,' a division of InSITE Services, Inc.
ST. LOUIS, Mo., Jan. 18, 2001 (BUSINESS WIRE) — Cass Information Systems (Nasdaq:CASS) announces that it has entered into a letter of agreement to acquire business and substantially all assets of "The Utility Navigator�," a division of privately held InSITE Services, Inc., White Plains, N.Y.
The acquisition reaffirms the goal of Cass Information Systems to remain the premier provider of back office utility information in North America. As part of the agreement, Cass will assume bill payment services and web hosting for nearly 10,000 locations currently being served by InSITE.
In addition, Cass will purchase InSITE's payment and web presentation tool - The Utility Navigator� - which provides energy information to both utility companies and end users.
The move solidifies the market leadership of Cass in the fast growing utility information services market. Including the new customers gained from InSITE, Cass will be performing payment and extended data capture services on 2.4 million gas, electric, water, sewer and phone invoices yearly, nearly double the volume of its nearest competitor. Cass Information Systems serves the growing Energy Service Providers (ESP) market by providing data and reporting tools to help them identify facility-related savings opportunities.
"We think the demand for detailed energy information is becoming increasingly important in an era of rising costs and deregulation. The acquisition fits perfectly into our strategy of being the premiere "back office" provider of that information to leading energy service providers throughout North America," said Lawrence A. Collett, Cass chief executive officer. "We know InSITE and their systems well, and are pleased to be able to incorporate their technology into our product."
InSITE is a pioneering application service provider fostering next-generation utilities through strategic, customer-focused and web-enabled billing solutions. Founded in 1995 to provide billing and energy services to the energy industry, InSITE's sole focus is on energy billing application services. The sale will allow InSITE to continue the aggressive expansion of its fast-growing billing services product line. The company currently provides billing services to some of the nation's largest utilities.
"This move makes sense for both companies, and more importantly, for our respective customers," said Jonathan Shaevitz, president of InSITE. "Our customers get a seamless transfer of their utility bill payment processing while continuing to enjoy our acclaimed website. InSITE divests itself of a product line that was successful in the marketplace, but took us away from our core competency - leading edge technology development for the utility industry."
Cass Information Systems has been a leading provider of payables services and information support systems to companies throughout North America since 1956. The company pays approximately $8.5 billion worth of freight and utility liabilities on behalf of customers from processing centers in St. Louis, Columbus, Ohio and Boston, Mass. The support of its bank subsidiary, Cass Commercial Bank, founded in 1906, makes Cass Information Systems unique in the industry.