Bankhall members are set to receive an average windfall of £6,250 as the
member services organisation is bought for £114m by software giant Lynx.
The 800 member firms which qualify for a payout belong to Bankhall and its
nursery network Investment Strategies.
The new operation has yet to decide on how to determine individual
payouts. It may depend on the size of firm and its length of membership.
Bankhall now plans to develop a one-stop internet portal by this autumn
which will incorporate its systems and offer share trading. It will
initially provide quotations on several products, including
Nine providers have signed up to the portal so far but analysts say there
is tough competition for other life offices.
Cheshire-based Bankhall provides compliance, administrative and other
support services. In 1999, its turnover was £33.1m, with operating profits
of £3m. It hopes to expand as a result of this week's deal.
Lynx supplies systems to financial services companies, including Halifax
and Standard Life Bank.
Lynx managing director of financial services Ken Liscombe says: “Being a
software provider is not sufficient in the long term. We had to become part
of a distribution channel and Bankhall puts us among the three most
important of those.”
Bankhall head of business operations Tony Murrell says: “The deal has
given us a strategic alliance with an ideal partner. We can increase the
number of services and benefits to members.”