The Nasdaq-listed provider of payments and financial services technology, Fiserv announced today that the company has signed a definitive agreement to acquire Finxact, one of the fastest-growing firms in the digital banking ecosystem.
Fiserv was one of the early investors in Finxact. According to the details shared by the company, it will acquire the remaining ownership stake in Finxact for nearly $650 million. The transaction, which is subject to customary approval, is expected to close later in 2022.
Established in 2016, Finxact facilitates clients through an innovative and extensible banking solution that empowers financial institutions with enhanced access to their data. Fiserv termed the latest acquisition an important step towards the company’s digital banking strategy.
Through Finxact, Fiserv will support customers with flexible and customized digital banking experiences.
“We’re accelerating the delivery of innovative digital banking experiences for our clients and elevating their ability to compete in a rapidly changing market. This transaction complements our Fiserv account processing solutions and expands our opportunities to serve clients by bringing together Finxact’s highly flexible and scalable API-first capabilities with the comprehensive digital financial solutions portfolio and expertise of Fiserv. Through this combination, Fiserv will create a streamlined path for clients to offer digital solutions to their customers,” Frank Bisignano, the President and Chief Executive Officer of Fiserv, said.
Digital Banking
Technology is driving the transformation in today’s global banking sector. According to Fiserv, the company is planning to cement its place in the financial services industry through user-friendly digital banking experiences.
“Joining with Fiserv is a tremendous opportunity for Finxact,” said Frank Sanchez, the Chairman, and CEO of Finxact. “We recognize that Finxact’s technology can serve to level up the industry’s delivery infrastructure, and crucially at a time when banking is undergoing transformative changes.”
In June 2021, Deutsche Bank formed a collaboration with Fiserv for payment acceptance in Germany.
