NetBank has signed a definitive agreement to acquire Financial Technologies Inc. (FTI), a Jackson, MS, provider of ATM services for retail and other non-bank businesses in the Southeast.

NetBank purchased FTI for cash and $1 million worth of restricted stock. The final agreement also provides for potential cash payments of contingent consideration based on the compound average annual growth rate of FTI’s earnings over the next five years.

Pending regulatory approval, FTI will operate as a subsidiary of NetBank, which operates from Atlanta. The transaction is expected to close within the fourth quarter and be immediately accretive.

This deal is part of NetBank’s ongoing revenue diversification strategy, said Douglas Freeman, chairman and chief executive officer of the Internet bank.

“The addition of FTI will allow us to further build out our transaction processing lines of business in a quick, cost-effective way,” Freeman said. “Our companies have a similar mission to provide small institutions or non-bank retail businesses the means of distributing ancillary financial services to their existing customers. There are also natural synergies with our own retail and small business banking services that we can realize over time.”

FTI has been profitable in each year of its seven-year operating history. Its deployment of more than 4,300 ATMs across the country places it fifth among the top third-party, off-premise ATM providers in the U.S. On average, FTI machines process approximately 1.5 million or $60 million worth of transactions per month.

“We’re excited to join the NetBank family of businesses,” said Tommy Glenn, founder and president of FTI. “By leveraging NetBank’s financial and intellectual capital, we have the opportunity to grow our core business and expand high-potential initiatives, such as our merchant processing and pre-paid services. This transaction is a win-win for our customers and employees.”

NetBank: www.netbank.com