Fiserv, Inc. (FISV) recently announced that it has acquired Credit Union On-Line Inc. (CUOL), which has been providing data processing solutions to credit unions since 1980.

Co-owned by CEO Connie Boretti and two credit unions – RTN Federal Credit Union and Medical Area Federal Credit Union, CUOL is a credit union service organization that runs an outsourced version of the XP2 account processing solution of Fiserv. The financial terms of the deal were not disclosed.

Management stated that the acquisition of CUOL will provide Fiserv clients with a choice of either in-house or outsourced delivery of XP2. Earlier, Fiserv announced that it acquired Mobile Commerce Ltd. (M-Com) to strengthen its existing mobile channel capabilities.

Fiserv and M-Com have been partners since 2008 to develop and deliver Mobile Money from Fiserv to hundreds of financial institutions. The financial terms of the acquisition were not disclosed. Fiserv and M-Com have a lot of mutual customers in the U.S. and the merger of the two companies will accelerate the development of innovative solutions for these clients.

Management believes that the acquisition of M-Com will enable Fiserv to provide anywhere, anytime access to consumers who want their finances at their fingertips. Additionally, Fiserv will have the ability to integrate M-Com mobile banking and payment technology into current product offerings, as well as leverage that technology for transformative new solutions.

The company expects important customer wins in 2011, driven by strong interest of clients in Acumen and the strength of its pipelines.  For the Bill payment transaction, the company continues to expect double-digit growth. Fiserv projects strong performance in market-leading account processing businesses.

Fiserv assists financial institutions and health plan administrators in managing their information systems, helping them to efficiently deliver services to their customers. The company competes with Fidelity National Information Services Inc. (FIS), Metavante Technologies Inc., Jack Henry and Associates Inc., and Open Solutions Inc.

We are concerned about slow organic growth and expansion of margins, which drive our “Neutral” recommendation, supported by a Zacks # 3 Rank (“Hold”). 

 
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