It was a big day for Finovate alumni. ACI Worldwide and FIS, themselves both Finovate alums, rang the register on a couple of smaller fintech companies they hope will make them even bigger players in the online banking and payments world.
Online Resources Bought by ACI Worldwide
The deal is also expected to increase the company’s customer base, with 1,000 banks, billers and other FIs coming along with Online Resources into the ACI Worldwide fold.
A look at the numbers:
- Online Resources provides services to more than 1,000 FIs and billers
- It processes more than 240 million bill payment transactions each year
- It connects more than 9,000 billers
- The combined entity anticipates cost synergies (i.e., saving in operating expenses) of more than $19 million.
- Common shareholders will receive $3.85 per share, an 83% premium over yesterday’s closing price
FIS Purchases mFoundry
FIS’s decision to buy the 78% of mFoundry that it did not already known is seen as an opportunity for the company to assert itself in the mobile arena, while expanding its customer base in the process.
FIS already has a sizable footprint when it comes to banking and payments technology. And in bringing mFoundry fully on board, the company has helped fuel optimism about the prospects for greater innovation and “convergence” among the various players within the industry.
More on the deal:
- mFoundry serves more than 800 banks and credit unions across the country
- The acquisition will cost FIS $120 million (valuing mFoundry at about $160 million)
- The deal is expected to close by the end of March
- Founded in 2004, mFoundry’s clients include Bank of America, Zions Bank, and more than a third of the top-50 financial institutions in the U.S.
- FIS serves more than 14,000 FIs in more than 100 countries