LITTLE ROCK, Ark., Sept. 15 /PRNewswire/ -- ALLTEL (NYSE: AT) announced today that it has entered into a letter of intent to acquire the ACE Software Sciences business from ACE USA Financial Institution Specialists (FIS), a business unit of ACE USA.
ACE Software Sciences produces the workflow-based mortgage servicing software known as MaxMilion that is designed to enhance the workflow capabilities of ALLTEL's Mortgage Servicing Package (MSP).
MaxMilion will be marketed to mortgage servicers through ALLTEL Information Services, which supplies industry-leading computing solutions to financial services, mortgage and telecommunications companies.
"The acquisition of the MaxMilion product and the talented employees of ACE Software Sciences strengthens ALLTEL's capabilities in the workflow solutions market," said Jim Milligan, president of ALLTEL Information Services-Residential Lending Solutions. "This acquisition demonstrates our continued commitment to innovation and to creating value for our customers by providing another powerful automation tool to increase productivity and efficiencies."
ACE clients will benefit from the alliance as well, according to Marty Gentleman, president of ACE USA FIS.
"With ALLTEL's software resources, the alliance will provide a better way for both ACE USA FIS and ACE Software Sciences to service current and future clients," Gentleman said. "The ACE Software Sciences group will be able to grow to its full potential beyond insurance, and ACE USA FIS will be able to focus on its insurance core competencies and solutions strategy while retaining its competitive advantages. With the capability of bundling MaxMilion with our lender-placed hazard insurance and our rights to control the distribution of the insurance component of the MaxMilion software, we have the ideal alliance with ALLTEL."
The MaxMilion software is designed to decrease servicing costs by providing users with a graphical user interface and work queues to perform mortgage-servicing functions. The MaxMilion imaging and workflow solution provides users with transaction processing, decision support and management information to eliminate redundancies and ensure data consistency.
Bank of America Mortgage has a long-standing relationship with ACE Software Sciences and the two have taken a leading role in developing many loan servicing solutions. "ACE Software Sciences has an in-depth understanding of mortgage industry processes and has provided Bank of America Mortgage with a state-of-the-art solution for our needs," said Gary Bettin, national servicing director of Bank of America Mortgage. "Teaming up with ALLTEL, a leading technology provider, is a home run for both ALLTEL and ACE."
ALLTEL plans to enhance the solution through integration with ALLTEL applications. "Norwest is extremely excited about this partnership between ACE and ALLTEL," said Bob Caruso, senior vice president of Norwest Mortgage. "ALLTEL's servicing platform, combined with ACE Software Sciences' innovation, will provide Norwest with uniquely progressive automation tools."
Dan Pickett, general manager of ACE Software Sciences, will join ALLTEL along with the ACE Software Sciences professional staff. They will operate in a new business unit in Albany, N.Y.
"All mortgage servicers rely on sets of rules and guidelines to keep their business running," Pickett said. "MaxMilion automates tasks as simple as payment processing and as complex as insurance transactions, all based on the policies and procedures of the lender."
ALLTEL and ACE USA FIS anticipate completing negotiations, obtaining all approvals and signing the definitive alliance and acquisition agreement before the end of September 1999.
ALLTEL is the nation's leading provider of residential lending solutions, servicing more than 20 million loans with its MSP. The system services more than 40 percent of U.S. mortgages, with a balance in excess of $2 trillion. ALLTEL's servicing systems support 64 of the top 100 mortgage services in the country.
ACE FIS provides insurance protection for 45 of the top 50 mortgage servicers. ACE USA, headquartered in Philadelphia, is the U.S. operations of the ACE Group of Companies, headed by ACE Limited.
On July 2, ACE Limited (NYSE: ACL) completed the acquisition of the property and casualty insurance business of CIGNA Corporation. ACE USA provides insurance products and services through U.S. operating subsidiaries. The ACE Group of Companies provides insurance and reinsurance for a diverse group of clients around the world.
ALLTEL Information Services, with customers in 54 countries and territories, provides information processing management, application software, outsourcing services and consulting services to the financial, mortgage and telecommunications industries.
ALLTEL is a customer-focused information technology company that provides wireline and wireless communications and information services.
For additional information contact: Steve Eddington, Corporate