For some of you, this will be old news. However, I think it's worth reminding ourselves at times what great potential there is in this stock. Royal Bank has a number one team out there and will do very well in the future. Check out their investor relations page and you'll find the complete story. Have to go back to March 9/98. Date: March 9, 1998
Released by: Security First Technologies
ATLANTA, March 9, 1998�Security First Network Bank today announced that Royal Bank of Canada through one of its U.S. based subsidiaries ("Royal Bank"), has agreed to acquire the banking operations of Atlanta-based SFNB, the world's first Internet bank. In addition, Royal Bank has entered into technology licensing and consulting agreements with S1 effective upon acquisition of the banking operations, agreed to purchase stock in SFNB and acquire an option to purchase stock in the Company in the future.
Transaction Details The total transaction cost to Royal Bank is US$20 million. Royal Bank will purchase SFNB for US$13 million; process SFNB Internet transactions through the S1 Data Center; license S1 technology and consulting services for US$6 million; and purchase 92,593 shares of stock for US$1 million. Additionally, Royal Bank has been granted an option to purchase an additional 733,597 shares of stock for US$10 million over a period of 21 months from the date of closing the banking operations transaction. Royal Bank also has purchased the right to future international software development and consulting services.
In addition to the bank transaction, Royal Bank has entered into the STAR program through its acquisition of Virtual Financial Managertm software licenses. Involvement in the STAR program includes a seat on the S1 Board of Directors and participation with other industry leaders in the development of current and future S1 software products. S1's STAR program is a technology licensing agreement between S1 and five financial institutions to involve them in further development of S1' applications.
Security First Technologies (S1) is a wholly-owned subsidiary of the world's first Internet bank, Security First Network Bank. Security First Technologies develops integrated, brandable Internet applications that enable financial institutions to offer products, services and transactions over the Internet in a secure environment. S1 also offers strategic business consulting and marketing support, training, product integration, and customer and data service center outsourcing. Security First Technologies, through direct sales and channel partnerships, has agreed to provide software applications and technologyto 66 financial entities, including 15 of the top 100 U.S. financial institutions.