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Fair Isaac Announces Acquisition of NAREX Inc.
http://www.collectionindustry.com/index.cfm?id=8&news_type=1&news_id=10156
July 29, 2003 — Fair Isaac Corporation (NYSE: FIC), the leading provider of analytics and decision technology, announced today that it will acquire NAREX Inc., a leader in analytic solutions for collections and recovery, in a $10 million cash transaction. The Golden, Colo.-based firm will become a new operating unit within Fair Isaac's Global Account Management Solutions division.
Fair Isaac and NAREX share a commitment to delivering leading-edge customer strategy and decision management analytics, and the acquisition extends the reach of Fair Isaac's account management solutions across the entire credit customer lifecycle. Industry-standard Fair Isaac offerings such as the FICO® score and TRIAD™ adaptive control system enable businesses to leverage advanced analytics to target customers, book new accounts, establish credit lines and manage early stage collections. NAREX's solutions and expertise give Fair Isaac the added ability to drive businesses' late-stage collection and recovery strategies.
"The addition of NAREX's people and solutions will help us create an even more powerful analytic value proposition for businesses focused on making smarter, more profitable decisions at every stage of the credit customer lifecycle," said Tom Grudnowski, CEO of Fair Isaac. "This acquisition is a solid strategic fit that we believe will deliver significant opportunity and bottom-line benefits for customers of both companies, while positioning Fair Isaac to immediately address a growing priority for credit grantors and debt recovery agents."
Grudnowski also expects the two companies' combined analytics and solution development teams to accelerate Fair Isaac's product innovation and enhancement efforts.
"By joining Fair Isaac, we expect to grow significantly the presence of NAREX's proven collection solutions in the financial service, telecommunications, student lending and retail industry segments," said Bernhard Nann, CEO of NAREX. "Fair Isaac's extensive installed base of clients that are already using its market-leading account management solutions provide a tremendous opportunity to make more businesses aware of the benefits of applying our unique analytic approach to their collection and recovery efforts."
Complementary Analytic Approach
Each stage of the credit customer account management lifecycle requires a unique analytic approach to ensure the most effective decisions are made for each account. Measuring risk and assessing the monetary potential of late-stage collection and recovery accounts require data sources and techniques designed to assess the potential of accounts once they reach 'bad' or 'charged off' status. Much like Fair Isaac does to support account originations and credit line management, NAREX applies custom, proprietary analytic models to evaluate a credit customer's potential for repaying a debt, how much the customer is likely to pay and when, and what types of communication and levels of collection effort are most likely to elicit a favorable response.
The NAREX operation will continue to operate from its Golden, Colo., location under the Fair Isaac name.
Financial Impact
The acquisition will have negligible revenue impact and approximately $0.01 per share of additional expense to Fair Isaac's fourth quarter. Original fourth quarter guidance given on July 23, 2003 was revenue expectations of $168 million to $172 million and earnings of $0.63 to $0.65 per share. New fourth quarter guidance reflecting the acquisition is now $168 million to $172 million for revenue contribution and earnings of $0.62 to $0.64.
About NAREX Inc.
Established in 1995, NAREX Inc. is the industry leader in collections and recovery analytic solutions, providing services to some of the nation's largest credit grantors, collection agencies, and debt buyers. Using artificial intelligence-based, proprietary technologies, NAREX builds custom and non-custom scoring solutions, optimization models, debt evaluation services, and other offerings to improve collections and recovery results. In 2002, NAREX introduced UniScore, a complete Web-based score package that prioritizes accounts for optimum recovery performance. UniScore includes an easy-to-use tool backed by industry best-practices studies to drive the right work effort to every account, and provides online reporting capabilities and twenty-four hour account access. NAREX also offers a suite of high impact placement solutions and services, including PlacementsPlus®, an account placement optimization and management system which enables accurate reconciliations, and provides thorough, easy-to-understand reporting for enhanced visibility into agency performance. More information about NAREX is available at www.narex.com
About Fair Isaac
Fair Isaac Corporation (NYSE:FIC - News) is the preeminent provider of creative analytics that unlock value for people, businesses and industries. The company's predictive modeling, decision analysis, intelligence management, decision management systems and consulting services power more than 25 billion mission-critical customer decisions a year. Founded in 1956, Fair Isaac helps thousands of companies in over 60 countries acquire customers more efficiently, increase customer value, reduce fraud and credit losses, lower operating expenses and enter new markets more profitably. Most leading banks and credit card issuers rely on Fair Isaac solutions, as do insurers, retailers, telecommunications providers, healthcare organizations and government agencies. Through the www.myfico.com Web site, consumers use the company's FICO® scores, the standard measure of credit risk, to manage their financial health. As of August 5, 2002, the business of HNC Software Inc., a leading provider of high-end analytic and decision management software, is part of Fair Isaac. For more information visit www.fairisaac.com.
Statement Concerning Forward-Looking Information
Except for historical information contained herein, the statements contained in this press release that relate to Fair Isaac are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, including statements about the benefits of the offerings and services described herein, are subject to risks and uncertainties that may cause actual results to differ materially, including any unforeseen technical difficulties related to the implementation use and functionality of the offerings, market acceptance of the offerings, the risks that customers will not perceive material benefits from the offerings, failure of the products to deliver the expected results, the possibility of errors or defects in the offerings, the company's ability to recruit and retain key technical and managerial personnel, the maintenance of its existing relationships with key alliance partners, competition, regulatory changes applicable to the use of consumer credit and other data, a lengthy sales cycle for our products, and other risks described from time to time in Fair Isaac's SEC reports, including its Annual Report on Form 10-K for the year ended September 30, 2002, and Form 10-Q for the period ended June 30, 2003. If any of these risks or uncertainties materializes or any of these assumptions proves incorrect, Fair Isaac's results could differ materially from Fair Isaac's expectations in these statements. Fair Isaac disclaims any intent or obligation to update these forward-looking statements.
Fair Isaac, FICO, TRIAD, and HNC are trademarks or registered trademarks of Fair Isaac Corporation, in the United States and/or in other countries. Other product and company names herein may be the trademarks of their respective owners.
Contact: Fair Isaac
Heidi Flannery, 800-213-5542 (Investors & Analysts)
investor@fairisaac.com
or
Brian Kane, 612-758-5232 (Media)
briankane@fairisaac.com
Source: Company Press Release
http://www.collectionindustry.com/index.cfm?id=8&news_type=1&news_id=10156
July 29, 2003 — Fair Isaac Corporation (NYSE: FIC), the leading provider of analytics and decision technology, announced today that it will acquire NAREX Inc., a leader in analytic solutions for collections and recovery, in a $10 million cash transaction. The Golden, Colo.-based firm will become a new operating unit within Fair Isaac's Global Account Management Solutions division.
Fair Isaac and NAREX share a commitment to delivering leading-edge customer strategy and decision management analytics, and the acquisition extends the reach of Fair Isaac's account management solutions across the entire credit customer lifecycle. Industry-standard Fair Isaac offerings such as the FICO® score and TRIAD™ adaptive control system enable businesses to leverage advanced analytics to target customers, book new accounts, establish credit lines and manage early stage collections. NAREX's solutions and expertise give Fair Isaac the added ability to drive businesses' late-stage collection and recovery strategies.
"The addition of NAREX's people and solutions will help us create an even more powerful analytic value proposition for businesses focused on making smarter, more profitable decisions at every stage of the credit customer lifecycle," said Tom Grudnowski, CEO of Fair Isaac. "This acquisition is a solid strategic fit that we believe will deliver significant opportunity and bottom-line benefits for customers of both companies, while positioning Fair Isaac to immediately address a growing priority for credit grantors and debt recovery agents."
Grudnowski also expects the two companies' combined analytics and solution development teams to accelerate Fair Isaac's product innovation and enhancement efforts.
"By joining Fair Isaac, we expect to grow significantly the presence of NAREX's proven collection solutions in the financial service, telecommunications, student lending and retail industry segments," said Bernhard Nann, CEO of NAREX. "Fair Isaac's extensive installed base of clients that are already using its market-leading account management solutions provide a tremendous opportunity to make more businesses aware of the benefits of applying our unique analytic approach to their collection and recovery efforts."
Complementary Analytic Approach
Each stage of the credit customer account management lifecycle requires a unique analytic approach to ensure the most effective decisions are made for each account. Measuring risk and assessing the monetary potential of late-stage collection and recovery accounts require data sources and techniques designed to assess the potential of accounts once they reach 'bad' or 'charged off' status. Much like Fair Isaac does to support account originations and credit line management, NAREX applies custom, proprietary analytic models to evaluate a credit customer's potential for repaying a debt, how much the customer is likely to pay and when, and what types of communication and levels of collection effort are most likely to elicit a favorable response.
The NAREX operation will continue to operate from its Golden, Colo., location under the Fair Isaac name.
Financial Impact
The acquisition will have negligible revenue impact and approximately $0.01 per share of additional expense to Fair Isaac's fourth quarter. Original fourth quarter guidance given on July 23, 2003 was revenue expectations of $168 million to $172 million and earnings of $0.63 to $0.65 per share. New fourth quarter guidance reflecting the acquisition is now $168 million to $172 million for revenue contribution and earnings of $0.62 to $0.64.
About NAREX Inc.
Established in 1995, NAREX Inc. is the industry leader in collections and recovery analytic solutions, providing services to some of the nation's largest credit grantors, collection agencies, and debt buyers. Using artificial intelligence-based, proprietary technologies, NAREX builds custom and non-custom scoring solutions, optimization models, debt evaluation services, and other offerings to improve collections and recovery results. In 2002, NAREX introduced UniScore, a complete Web-based score package that prioritizes accounts for optimum recovery performance. UniScore includes an easy-to-use tool backed by industry best-practices studies to drive the right work effort to every account, and provides online reporting capabilities and twenty-four hour account access. NAREX also offers a suite of high impact placement solutions and services, including PlacementsPlus®, an account placement optimization and management system which enables accurate reconciliations, and provides thorough, easy-to-understand reporting for enhanced visibility into agency performance. More information about NAREX is available at www.narex.com
About Fair Isaac
Fair Isaac Corporation (NYSE:FIC - News) is the preeminent provider of creative analytics that unlock value for people, businesses and industries. The company's predictive modeling, decision analysis, intelligence management, decision management systems and consulting services power more than 25 billion mission-critical customer decisions a year. Founded in 1956, Fair Isaac helps thousands of companies in over 60 countries acquire customers more efficiently, increase customer value, reduce fraud and credit losses, lower operating expenses and enter new markets more profitably. Most leading banks and credit card issuers rely on Fair Isaac solutions, as do insurers, retailers, telecommunications providers, healthcare organizations and government agencies. Through the www.myfico.com Web site, consumers use the company's FICO® scores, the standard measure of credit risk, to manage their financial health. As of August 5, 2002, the business of HNC Software Inc., a leading provider of high-end analytic and decision management software, is part of Fair Isaac. For more information visit www.fairisaac.com.
Statement Concerning Forward-Looking Information
Except for historical information contained herein, the statements contained in this press release that relate to Fair Isaac are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, including statements about the benefits of the offerings and services described herein, are subject to risks and uncertainties that may cause actual results to differ materially, including any unforeseen technical difficulties related to the implementation use and functionality of the offerings, market acceptance of the offerings, the risks that customers will not perceive material benefits from the offerings, failure of the products to deliver the expected results, the possibility of errors or defects in the offerings, the company's ability to recruit and retain key technical and managerial personnel, the maintenance of its existing relationships with key alliance partners, competition, regulatory changes applicable to the use of consumer credit and other data, a lengthy sales cycle for our products, and other risks described from time to time in Fair Isaac's SEC reports, including its Annual Report on Form 10-K for the year ended September 30, 2002, and Form 10-Q for the period ended June 30, 2003. If any of these risks or uncertainties materializes or any of these assumptions proves incorrect, Fair Isaac's results could differ materially from Fair Isaac's expectations in these statements. Fair Isaac disclaims any intent or obligation to update these forward-looking statements.
Fair Isaac, FICO, TRIAD, and HNC are trademarks or registered trademarks of Fair Isaac Corporation, in the United States and/or in other countries. Other product and company names herein may be the trademarks of their respective owners.
Contact: Fair Isaac
Heidi Flannery, 800-213-5542 (Investors & Analysts)
investor@fairisaac.com
or
Brian Kane, 612-758-5232 (Media)
briankane@fairisaac.com
Source: Company Press Release