Fiserv, Inc., provider of payments and financial services technology, today revealed that it has signed a definitive agreement to acquire Finxact, Inc., developer of a cloud-native banking solution.
The deal advances the Fiserv digital banking strategy through expansion of the firm’s account processing, digital, and payments solutions. Fiserv is an investor in Finxact from an early stage and with this transaction it will obtain the remaining ownership interest for approximately $650 million. The acquisition is expected to close later this year.
Finxact was founded in 2016. The company provides its clients with a real-time and extensible banking solution. It can help organisations of all sizes launch new products and digital capabilities with maximum flexibility and scalability through a robust set of APIs.
Frank Bisignano, President and Chief Executive Officer of Fiserv, said:
This transaction complements our Fiserv account processing solutions and expands our opportunities to serve clients by bringing together Finxact’s highly flexible and scalable API-first capabilities with the comprehensive digital financial solutions portfolio and expertise of Fiserv. Through this combination, Fiserv will create a streamlined path for clients to offer digital solutions to their customers. Finxact also enhances our ability to support a growing number of financial institution and business clients. We look forward to welcoming Frank Sanchez and the talented Finxact team to Fiserv as we continue to grow our client banking portfolio.
Finxact will bring domain expertise and a transformative approach to Fiserv. This will enable its clients to improve the agility of their digital banking operations and significantly reduce time to market for new customer experiences.
Frank Sanchez, Chairman and CEO of Finxact, added:
Joining with Fiserv is a tremendous opportunity for Finxact. We recognize that Finxact’s technology can serve to level up the industry’s delivery infrastructure, and crucially at a time when banking is undergoing transformative changes. We will be better positioned to serve a far greater number of institutions, of all sizes, when combined with the breadth and depth of Fiserv capabilities.
