Barrington Research Maintains Rating On Bottomline Technologies Following Intellinx Acquisition

Barrington Research maintained its Outperform rating and $30 price target for Bottomline Technologies (NASDAQ: EPAY) on Friday. This follows the announcement released on Monday that Bottomline had acquired Intellinx Ltd. for $66.7 million in cash and $18 million in common stock. Intellinx is a provider of cyber fraud and risk management solutions.

Gary Prestopino from Barrington wrote, “Intellinx's solutions are unique in their ability to non‐invasively monitor and analyze user behavior across multiple channels with the ability to instantly flag and stop suspicious activity that can reduce the risk of theft, information leakage, internal fraud, and payments fraud.”

The firm believes that Intellinx will provide $10 million of revenue in 2015, with expectations of 50 percent compounded annual revenue growth over the next five years.

Gartner Consulting wrote that, “The acquisition of Intellinx adds a growth product suite within the fraud detection and prevention market that is estimated at $17 billion annually with the expectations of a CAGR of 20% annually to $35 billion by 2019. We believe Intellinx's cyber fraud and risk management solutions are an excellent product fit with EPAY that provides substantial cross‐selling opportunities to EPAY's financial institution customers and the financial institution market in general.”

Bottomline closed Thursday at $21.85.