Fiserv and CheckFree to merge
Fiserv, provider of information management services, will acquire CheckFree in a deal worth more than $4 billion.
Fiserv, a big provider of information management services, including transaction processing, today announced that they have entered into a definitive agreement to acquire CheckFree Corp. in an all-cash transaction in excess of $4 billion.
CheckFree shareholders will in turn receive $48.00 in cash for each share of common stock.
Fiserv expects more than $100 million in annualized cost savings and more than $125 million in annualized revenue synergies between the two companies, it said in a statement.
The combination of Fiserv of Brookfield, Wisc. And CheckFree of Norcross, Ga., with its many complimentary services, would allow it to provide a wider range of services.
At present Fiserv has almost 6,000 core processing clients and all the top 100 banks in the U.S. CheckFree’s Electronic Commerce business processes over $1 billion transactions per year and services 21 of the top 25 financial institutions in the U.S.
“CheckFree’s industry-leading payment and Internet banking capabilities will significantly accelerate our strategic transformation, extending our service platform to the largest financial institutions,” said Jeffery Yabuki, President and Chief Executive Officer of Fiserv in a statement.
“An important objective of the transaction is to tightly integrate electronic bill payment and settlement capabilities with our core account processing and risk management solutions to create a unique value proposition unrivaled in the marketplace today,” Mr. Yabuki said.
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