Brookfield-based Fiserv Inc.
plans to acquire Jacksonville-based Finxact
in a deal aimed advancing the company’s digital banking efforts.
Fiserv was an early investor in Finxact, which has developed a cloud-native banking system that allows banks to quickly offer new products and services. The company will now pay around $650 million to acquire the remaining ownership interest.
“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,” said Frank Bisignano, president and chief executive officer of Fiserv.
Finxact was founded in 2016 and raised $12 million in seed funding in 2017. In 2019, the company raised an additional $30 million
in equity financing. New investors in that round included the American Bankers Association, Accenture Ventures, SunTrust Bank. Returning investors included Live Oak Ventures, First Data, Woodforest National Bank and T.N. Inc. of Thailand.
Fiserv acquired First Data in July 2019 in a $22 billion transaction.
“Joining with Fiserv is a tremendous opportunity for Finxact,” said Frank Sanchez, 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. We will be better positioned to serve a far greater number of institutions, of all sizes, when combined with the breadth and depth of Fiserv capabilities.”
The deal is still subject to regulatory approvals and is expected to close later this year.