Fiserv, Inc. FISV, a leading global provider of financial services
technology solutions, today announced that it has acquired Open Solutions
Inc., a leading provider of collaborative, enterprise core account processing
technology for financial institutions. The purchase price was $55 million, and
Fiserv assumed approximately $960 million of debt. In conjunction with the
acquisition, Fiserv will benefit from an acquired tax asset with a net present
value at the time of purchase of approximately $165 million.
Open Solutions is a Glastonbury, Conn.-based technology provider to banks,
thrifts and credit unions. Through this acquisition, Fiserv will add several
new technologies to its offerings, including DNA™, a real-time, open
technology account processing platform. DNA is an attractive alternative for
financial institutions that seek a modern technology architecture and want to
benefit from the power of data and integration. The platform also enables
collaboration and technology-sharing through DNAcreator™ and DNAappstore™ to
deliver localized and unique customer-facing value.
Through this acquisition, Fiserv will also add several other key solutions,
including the CUnify™ and TotalPlus™ account processing platforms, Weiland
Account Analysis™ for commercial account analysis, tools that enable the
creation and sharing of client-developed functionality, and Raddon Financial
Group, which offers performance consulting services.
Open Solutions serves more than 3,300 clients worldwide, including more than
800 account processing clients. These clients can benefit from the broad array
of add-on solutions offered by Fiserv, such as its CheckFree^® RXP^®
electronic bill payment service, ACCEL/Exchange^® payments network, debit
processing services, Popmoney^® social payments service, Corillian Online^®
banking, Mobiliti™ mobile banking, and a variety of other products and
services that can create opportunities for financial institutions to grow and
prosper.
“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,” said Jeffery Yabuki, President and Chief
Executive Officer of Fiserv. “Open Solutions' strong team of associates is
intently focused on client success and committed to collaborative technology,
which will enhance the value we provide to our clients.”
“We are extremely proud of the innovative products Open Solutions has
developed since its founding in 1992, and the strong business that we have
built over the years,” said Louis Hernandez, Jr., Chairman and Chief Executive
Officer of Open Solutions. “Joining Fiserv provides us with significant
resources that will benefit our clients and increase market momentum. We are
delighted to join Fiserv, a leader in the delivery of innovative financial
services technologies.”
This acquisition adds technology solutions, brings a base of high-quality
account processing clients, and provides new opportunities for Open Solutions
clients to create value for their customers and members. Over time, Fiserv
expects to add some of the features contained in its Acumen^® account
processing platform to DNA. This combination will provide financial
institutions – including credit unions, banks and thrifts – with a technology
platform that enables the delivery of a differentiated experience along with
integrated solutions. This enhanced technology will also be available for
those institutions that want agility and speed in the United States, and in
selected areas around the world.
The company expects to achieve annualized revenue synergies in connection with
the acquisition of at least $75 million, and annualized cost synergies in
excess of $50 million, over the next several years. The transaction was
completed on January 14, 2013.
Additional information about the transaction is available at www.fiserv.com.
Preliminary 2012 Results and Preliminary 2013 Guidance
Based on preliminary information, the company anticipates its 2012 adjusted
earnings per share to increase approximately 12 percent over 2011. The company
also anticipates its 2012 adjusted internal revenue growth to be at 2 percent
for the full year.
On a preliminary basis for 2013, the company expects adjusted internal revenue
growth of 3 to 4 percent, and 15 to 18 percent adjusted earnings per share
growth over 2012.
The company will supply its actual results for 2012, and formal guidance for
2013, in its year end conference call on February 5, 2013.
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