Fiserv buys Open Solutions
15 January 2013 | 6123 views | 0
Fiserv has acquired rival fintech vendor Open Solutions for $55 million in a deal that also sees it assume around $960 million of debt.
Founded in 1992, Connecticut-based Open Solutions provides account processing and analysis technology to more than 3000 banks, thrifts and credit unions around the world.
The vendor's flagship product, the DNA real-time, open technology account processing platform is used by more than 800 clients. Fiserv says that it plans to add some of the features contained in its Acumen account processing platform to DNA in the future.
The firm is also hoping to sell DNA customers add-on features such as its CheckFree RXP electronic bill payment service, Popmoney social payments tool and Mobiliti m-banking technology.
Jeffery Yabuki, president and CEO, Fiserv: "Open Solutions provides several growth opportunities, including a real-time account processing capability that serves multiple charter types, languages and currencies on a single platform."
The acquisition is expected to bring in at least $75 million in extra annual revenues and result in cost savings of more than $50 million over the next several years.
It is the second big M&A transaction in the fintech space within a week, following Wall Street Systems acquisition of IT2 on Friday.
Meanwhile, Fiserv says it expects 2012 adjusted earnings per share to increase by 12% over 2011 and adjusted internal revenue growth of two per cent. On a preliminary basis for 2013, adjusted internal revenue growth is anticipated to be between three per cent and four per cent percent with earnings per share of 15% to 18%. Actual results and guidance will be given on 5 February.