Of Special Interest
1st July 2011
Fiserv buys CashEdge
Fiserv has agreed to buy CashEdge for $465m (€322m £290m ¥37.7bn Y3,005m). The deal is estimated to be earnings neutral for this year and accretive thereafter. The two hope to close the deal in September subject to regulatory approvals.
The rationale for the deal is the combination of the United States two largest providers of P2P payment services to banks. Fiserv operates the ZashPay service and CashEdge the PopMoney service. Their solutions cover both personal and small business applications. Fiserv also lists CashEdge services for account to account transfer, account opening, funding and data transfer as useful additions.
"CashEdge provides an attractive suite of solutions to further enable the delivery of a highly differentiated payments experience for financial institutions and their customers, as well as accelerate the coming P2P movement," said Jeffery Yabuki, President and Chief Executive Officer of Fiserv. "CashEdge brings a strong and knowledgeable team that has a well-deserved reputation for innovative product development and delivery excellence. Importantly, we share a common vision for new payment solutions enabled by a financial institution-centric platform."
"At CashEdge, we have built a strong business delivering innovative payments and data aggregation solutions to financial institutions. We are delighted to be joining the Fiserv family. It represents a very natural next step and exciting growth opportunity for our clients, our people and our products," said Sanjeev Dheer, Co-Founder, Chief Executive Officer and President of CashEdge. "Additionally, we believe that the payments industry has reached a pivotal point in the evolution of consumer and small business payments, and the merger of our efforts will significantly enhance our ability to deliver innovative solutions to our financial institution clients."