Highly acquisitive financial IT firm Fiserv has signed a definitive agreement to buy BillMatrix Corporation, a Dallas-based provider of electronic bill payment services, for about $350 million.
Founded in 1994, BillMatrix provides billers with outsourced payment services that allow customers to get immediate credit for bills paid online or over the phone using electronic cheques, debit cards or credit cards. The firm has more than 120 clients including utilities, telecommunications providers, insurance companies and lenders.
The majority of the company's stock is owned by Great Hill Partners, a Boston private equity firm, and other outside investors, while the remainder is owned by management and employees.
BillMatrix is expected to generate revenue of approximately $90 million in 2006.
Pat Foy, president of Fiserv's bank servicing and electronic payments group, says the vendor is seeing strong demand from its financial institution client base for electronic bill-pay solutions.
"There is considerable opportunity for BillMatrix to expand on its current client base, and we believe we can leverage the company's success in the biller-direct market to offer more options to our clients," says Foy.
Foy adds that financial institutions can also use BillMatrix's services for their own expedited payment needs and to resell the services to corporate customers.
Following the acquisition, BillMatrix's employees and its president and chief executive officer Scott Walker, will join Fiserv.