Fiserv, Inc. (FISV) recently completed the acquisition of CashEdge, Inc. for $465 million, in an attempt to expand digital payments and channel strategies.
Headquartered in New York City and with offices in Silicon Valley and India, CashEdge provides innovative payments and aggregation solutions to financial institutions. CashEdge caters to more than 500 clients, including many of the nation's largest banks.
Sanjeev Dheer, Co-Founder, Chief Executive Officer and President of CashEdge, will serve as President of this new Fiserv division.
The acquisition will be neutral to the bottom line in 2011 and accretive to adjusted earnings per share in fiscal 2012.
Both the companies offer P2P services enabling payments, Fiserv through ZashPay and CashEdge through Popmoney. As a consequence of the merger, the company will gain new capabilities such as P2P money request, and small business electronic invoicing and remittance.
Fiserv currently serves approximately 16,000 clients on a worldwide basis, which include financial institutions of all sizes and charter types, brokerage and investment firms, and billers such as retailers, telecommunication firms, and utilities.
CashEdge’s talented team will support innovative product development and delivery excellence. The company will also expand its workforce in the United States and India.
Earlier, Fiserv announced that Fulton Financial Corporation has selected a complete outsourced banking solution based on the Signature bank platform from Fiserv. Fulton, with $16 billion in assets, chose Fiserv due to its advanced technology, and flexible, scalable and integrated systems.
The platform is expected to help the company focus on its organic and acquisition growth targets, deepen its sales and service excellence culture and increase efficiency through streamlined processes.
In addition, Fulton has chosen other products from Fiserv, which include Prologue Financial Accounting Services, Construction Loan Manager, Bank Intelligence Solutions and debit processing. Fulton Financial has previously implemented CheckFree RXP for bill payment, ZashPay for person-to-person payments and Mobile Money for mobile banking.
We currently have a Neutral recommendation on Fiserv. Our recommendation is supported by a Zacks #3 Rank, which translates into a short-term rating of Hold.
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