News
News
8/2/2007
10:17 AM
Connect Directly
RSS
E-Mail
50%
50%

Fiserv Acquires CheckFree For $4.4 Billion

CheckFree's electronic commerce business processes more than 1 billion transactions annually for 21 of the top 25 financial institutions.

In a merger of financial giants, Fiserv said Thursday that it will acquire CheckFree in an all-cash transaction for $4.4 billion.

Both companies have been on acquisition binges in recent months, and the new combined company is expected to broaden Fiserv's existing strong presence in information management systems and services for the financial and insurance industries to now include CheckFree's strengths in worldwide financial electronic commerce services and products.

CheckFree's "payment and Internet banking capabilities will significantly accelerate our strategic transformation, extending our service platform to the largest financial institutions," Jeffrey Yabuki, Fiserv's president and CEO, said 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." The two companies have a long history of partnering in the broad financial commerce area.

Fiserv already supplies services to all of the top 100 U.S. banks, including nearly 6,000 core processing clients. CheckFree's electronic commerce business processes more than 1 billion transactions annually for 21 of the top 25 financial institutions, the companies noted.

Pete Kight, CheckFree's chairman and CEO, said CheckFree's offerings will help Fiserv round out its effort in the evolving field of U.S. payments and will also help the new combined company grow in the managed financial accounts area.

Kight will continue as an executive in the merged company and will be appointed to its board of directors.

Comment  | 
Print  | 
More Insights
The Business of Going Digital
The Business of Going Digital
Digital business isn't about changing code; it's about changing what legacy sales, distribution, customer service, and product groups do in the new digital age. It's about bringing big data analytics, mobile, social, marketing automation, cloud computing, and the app economy together to launch new products and services. We're seeing new titles in this digital revolution, new responsibilities, new business models, and major shifts in technology spending.
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek Tech Digest - August 27, 2014
Who wins in cloud price wars? Short answer: not IT. Enterprises don't want bare-bones IaaS. Providers must focus on support, not undercutting rivals.
Flash Poll
Video
Slideshows
Twitter Feed
InformationWeek Radio
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.