Combination will provide additional value for Open Solutions clients and
add to Fiserv products and capabilities;
preliminary 2012 results and preliminary 2013 guidance
BROOKFIELD, Wis.--(BUSINESS WIRE)--
Inc. (NASDAQ: FISV), a leading global provider of financial services
technology solutions, today announced that it has acquired Open
Solutions Inc., a leading provider of collaborative, enterprise core
account processing technology for financial institutions. The purchase
price was $55 million, and Fiserv assumed approximately $960 million of
debt. In conjunction with the acquisition, Fiserv will benefit from an
acquired tax asset with a net present value at the time of purchase of
approximately $165 million.
Open Solutions is a Glastonbury, Conn.-based technology provider to
banks, thrifts and credit unions. Through this acquisition, Fiserv will
add several new technologies to its offerings, including DNA™, a
real-time, open technology account processing platform. DNA is an
attractive alternative for financial institutions that seek a modern
technology architecture and want to benefit from the power of data and
integration. The platform also enables collaboration and
technology-sharing through DNAcreator™ and DNAappstore™ to deliver
localized and unique customer-facing value.
Through this acquisition, Fiserv will also add several other key
solutions, including the CUnify™ and TotalPlus™ account processing
platforms, Weiland Account Analysis™ for commercial account analysis,
tools that enable the creation and sharing of client-developed
functionality, and Raddon Financial Group, which offers performance
Open Solutions serves more than 3,300 clients worldwide, including more
than 800 account processing clients. These clients can benefit from the
broad array of add-on solutions offered by Fiserv, such as its CheckFree®
RXP® electronic bill payment service, ACCEL/Exchange®
payments network, debit processing services, Popmoney® social
payments service, Corillian Online® banking, Mobiliti™ mobile
banking, and a variety of other products and services that can create
opportunities for financial institutions to grow and prosper.
"Open Solutions provides several growth opportunities, including a
real-time account processing capability that serves multiple charter
types, languages and currencies on a single platform," said Jeffery
Yabuki, President and Chief Executive Officer of Fiserv. "Open
Solutions' strong team of associates is intently focused on client
success and committed to collaborative technology, which will enhance
the value we provide to our clients."
"We are extremely proud of the innovative products Open Solutions has
developed since its founding in 1992, and the strong business that we
have built over the years," said Louis Hernandez, Jr., Chairman and
Chief Executive Officer of Open Solutions. "Joining Fiserv provides us
with significant resources that will benefit our clients and increase
market momentum. We are delighted to join Fiserv, a leader in the
delivery of innovative financial services technologies."
This acquisition adds technology solutions, brings a base of
high-quality account processing clients, and provides new opportunities
for Open Solutions clients to create value for their customers and
members. Over time, Fiserv expects to add some of the features contained
in its Acumen® account processing platform to DNA. This
combination will provide financial institutions — including credit
unions, banks and thrifts — with a technology platform that enables the
delivery of a differentiated experience along with integrated solutions.
This enhanced technology will also be available for those institutions
that want agility and speed in the United States, and in selected areas
around the world.
The company expects to achieve annualized revenue synergies in
connection with the acquisition of at least $75 million, and annualized
cost synergies in excess of $50 million, over the next several years.
The transaction was completed on January 14, 2013.
Additional information about the transaction is available at www.fiserv.com.
Preliminary 2012 Results and Preliminary 2013 Guidance
Based on preliminary information, the company anticipates its 2012
adjusted earnings per share to increase approximately 12 percent over
2011. The company also anticipates its 2012 adjusted internal revenue
growth to be at 2 percent for the full year.
On a preliminary basis for 2013, the company expects adjusted internal
revenue growth of 3 to 4 percent, and 15 to 18 percent adjusted earnings
per share growth over 2012.
The company will supply its actual results for 2012, and formal guidance
for 2013, in its year end conference call on February 5, 2013.
Fiserv will provide an investor conference call via webcast discussing
the transaction at 5 p.m. CT on Jan. 14. The live webcast and archived
replay can be accessed at www.fiserv.com.
Those wishing to listen to the discussion live should log on 10 minutes
before the start of the call. An archive of the call will be available
approximately one hour after the call concludes.
About Open Solutions
Solutions Inc.® helps community-based financial
institutions around the world enrich their local economies by providing
innovative technologies and insights that enable them to operate more
profitably, efficiently and collaboratively. Open Solutions provides
several platforms including DNA™,
an open, relationship-centered core banking platform built for global
collaboration. This approach to enterprise technology enables banks and
credit unions around the world to better realize the power of community
a collaborative marketplace for user-created core enhancements. For more
information, visit Open Solutions at www.OpenSolutions.com.
Fiserv, Inc. (NASDAQ: FISV) is a leading global technology provider
serving the financial services industry, driving innovation in payments,
processing services, risk and compliance, customer and channel
management, and business insights and optimization. For more
information, visit www.fiserv.com.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including statements regarding the company's preliminary 2012 financial
results and 2013 guidance and revenue and cost synergies from the
transaction discussed herein. Statements can generally be identified as
forward-looking because they include words such as "believes,"
"anticipates," "expects," "could," "should" or words of similar meaning.
Statements that describe the company's future plans, objectives or goals
are also forward-looking statements. Forward-looking statements are
subject to assumptions, risks and uncertainties that may cause actual
results to differ materially from those contemplated by such
forward-looking statements. The factors that may affect the company's
results include, among others: the possibility that the parties may be
unable to achieve expected results of the Open Solutions acquisition
within the expected time-frames or at all; integration may be more
difficult, time-consuming or costly than expected; revenues following
the transaction may be lower than expected; operating costs, customer
loss or business disruption (including, without limitation, difficulties
in maintaining relationships with employees, customers, clients or
suppliers) may be greater than expected following the transaction; the
retention of certain key employees; the impact on the company's business
of the current state of the economy, including the risk of reduction in
revenue resulting from decreased spending on the products and services
that the company offers; legislative and regulatory actions in the
United States and internationally, including the impact of the
Dodd-Frank Wall Street Reform and Consumer Protection Act and related
regulations; changes in client demand for the company's products or
services; pricing or other actions by competitors; the impact of the
company's strategic initiatives; the company's ability to comply with
government regulations, including privacy regulations; and other factors
included in the company's filings with the SEC, including its Annual
Report on Form 10-K for the year ended December 31, 2011 and in other
documents that the company files with the SEC. You should consider these
factors carefully in evaluating forward-looking statements, and are
cautioned not to place undue reliance on such statements. The company
assumes no obligation to update any forward-looking statements, which
speak only as of the date of this press release.
Judy DeRango Wicks
Vice President Investor Relations
Source: Fiserv, Inc.
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