HomeCom to Purchase Bank Insurance Marketing Firm in all Stock Deal Valued at $3.6 Million
The letter is subject to the satisfactory completion of due diligence and certain other conditions. As part of the letter of intent, the current management team will remain in place. Upon consummation of the transaction, an FIMI officer will join the board of directors of HomeCom. The closing is currently expected to occur within 120 days. The two companies intend to collaborate on various potential opportunities prior to closing.
Headquartered in Houston, FIMI is a group of financial services companies that includes: Premier Financial Services Inc., FIMI Securities, a NASD broker/dealer, as well as other insurance agencies. FIMI's core business is focused on the commercial banking industry. FIMI introduces banks to the sale of insurance and investment products. The company uses its expertise to train bank personnel to market and sell leading insurance and investment products to their customers. FIMI provides its services in over 35 states.
Daniel A. Delity, FIMI's president, says, "We believe that the union of FIMI and HomeCom represents an operational cornerstone to the execution of HomeCom's strategy for developing Internet-based financial product marketing and sales. HomeCom will provide an innovative platform to propel changes in the delivery of integrated financial services to bankers, registered representatives, insurance agents, and others. We believe that the coalition of HomeCom and FIMI will act as a catalyst for our increased productivity in the financial services industry. Our fundamental way of doing business will not change, however, HomeCom will bring advanced Internet technology to enable us to build unique Internet delivery systems."
According to Harvey Sax, HomeCom CEO, "This core acquisition, when completed, will make HomeCom a powerful force in selling insurance products utilizing Internet technology and established distribution channels. By combining FIMI's ten-year solid history of traditional sales production with HomeCom's advanced Internet technology, we believe we can leapfrog the competition and become a formidable competitor for E-commerce in the insurance industry. E-commerce in the insurance industry is in its infancy.
"Statistics from Datamonitor estimate that 60 percent of U.S. insurers will be selling over the Web by 2001. Fewer than five percent are now. Our previous investments in IRC and InsureRate, and our anticipated acquisition of FIMI, continue our transformation into one of the leading E-commerce solutions providers for the financial services industry," he continues. "There will be a big difference now between HomeCom and its competitors because when we come to the table to discuss business we bring a history with FIMI of selling over $1.6 billion worth of insurance premiums. We will have a real book of business and an exciting Internet platform."