Jan 18 - Fiserv Inc. (NASDAQ: FISV), a global provider of financial services technology solutions, has acquired Open Solutions Inc., a 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/Exchangepayments 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 CEO 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 CEO 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 Jan. 14, 2013.
Additional information about the transaction is available at www.fiserv.com.
About Open Solutions
Open Solutions Inc. helps community-based financial institutions around the world enrich their local economies by providing innovative technologies and insights that enable them to operate more profitably, efficiently and collaboratively. Open Solutions provides several platforms including DNA, an open, relationship-centered core banking platform built for global collaboration. This approach to enterprise technology enables banks and credit unions around the world to better realize the power of community through DNAappstore, a collaborative marketplace for user-created core enhancements. For more information, visit Open Solutions at www.OpenSolutions.com.
Fiserv Inc. (NASDAQ: FISV) is a global technology provider serving the financial services industry, driving innovation in payments, processing services, risk and compliance, customer and channel management, and business insights and optimization. For more information, visit www.fiserv.com.