On June 29, Fiserv agreed to acquire CashEdge. Here are some quick facts about the acquisition.
- The deal is expected to be complete by September 2011.
- The all-cash $465 million purchase price is more than six times CashEdge’s projected 2011 revenues of $75 million.
- Fiserv’s last large acquisition was CheckFree for $4.4 billion in 2007, which was 4.5 times its expected revenue. In comparison, Jack Henry & Associates’ $300 million purchase of iPay Technologies last year was 5.5 times iPay’s revenue.
- The expected consolidation of CashEdge’s Popmoney P2P transfer service (200 signed clients) and Fiserv’s ZashPay (700 signed clients) will create a stronger competitor to bank-owned clearXchange.