In an attempt to expand digital payments and channel strategies, Fiserv Inc. (FISV) entered into an agreement to acquire CashEdge Inc. for $465 million.
Headquartered in New York City and with offices in Silicon Valley and India, CashEdge provides innovative payments and aggregation solutions to financial institutions. CashEdge caters to more than 500 clients, including many of the nation’s largest banks.
The acquisition will be accretive to adjusted earnings per share in fiscal 2012. However, adjusted earnings per share in fiscal 2011 will be indifferent to the acquisition. The transaction is expected to close by September 2011.
With this acquisition, Fiserv expects to enhance its existing capabilities in account-to-account transfer, account opening and funding, data aggregation, small business payments, and person-to-person (P2P) payments.
Both the companies offer P2P services enabling payments, Fiserv through ZashPay and CashEdge through Popmoney. As a consequence of the merger, the company will gain new capabilities such as P2P money request, and small business electronic invoicing and remittance.
CashEdge’s talented team will support innovative product development and delivery excellence. The company will also expand its workforce base in the United States and India.
In the recently concluded quarter, Fiserv acquired Credit Union On-Line Inc., Mobile Commerce Ltd. and Maverick Network Solutions Inc. for $50 million.
Fiserv assists financial institutions and health plan administrators in managing their information systems, thus helping them deliver services to their customers efficiently. The company competes with Fidelity National Information Services Inc. (FIS), Accenture plc (ACN), Total System Services Inc. (TSS).
