Fiserv has announced that it has acquired Open Solutions Inc. The purchase price was USD55m, and Fiserv assumed approximately USD960m of debt. In conjunction with the acquisition, Fiservwill benefit from an acquired tax asset with a net present value at the time of purchase of approximately USD165m.
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 modern technology architecture and want to benefit from the power of data and integration.
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 consulting services.
“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.
Louis Hernandez, Jr., Chairman and Chief Executive Officer of Open Solutions said. “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.”
The company expects to achieve annualized revenue synergies in connection with the acquisition of at least USD75m, and annualized cost synergies in excess of USD50m, over the next several years.