Rancho Cordova, Calif. -- USCS International Inc. -- parent
company of CableData and its billing-processing sister company, International Billing
Systems -- intends to merge with DST Systems Inc., a billing and software provider to the
mutual-fund and insurance businesses.
Sources close to the companies said the merger will not
affect services to the cable industry, and familiar USCS executives will remain in place.
DST already provides billing to the direct-broadcast
satellite industry, counting DirecTv Inc. as one of its clients.
In a prepared statement, Tom Roberts, vice president of
marketing for IBS, said the merger will promote efforts by both companies to improve
features in printed bills and to expand efforts in electronic billing.
Both major investors in the potential merger partners --
Kansas City Southern Industries Inc., which owns 41 percent of DST, and George Argyros, a
USCS director holding 33 percent of its stock -- have agreed to vote for the merger, the
companies said.
UCSC's stock shot up by $4.38 to close at $30.38 per
share last Thursday, while DST plummeted by $8.63 to $51.87.
