Fiserv to Buy BillMatrix
Fiserv has reached a deal to buy BillMatrix Corp., a provider of electronic bill payment services, for approximately $350 million, the companies said.
BillMatrix is expected to generate revenue of approximately $90 million in 2006.
The transaction is expected to close in the third quarter. Fiserv said the deal "is expected to be neutral to earnings in 2005 and slightly accretive to earnings in 2006."
Leslie Muma, Fiserv's president and CEO, said in a news release that the acquisition of BillMatrix will allow Fiserv to expand its electronic payment capabilities at a time when Americans are increasingly using the Internet and the telephone to pay bills.
"The acquisition of BillMatrix gives Fiserv a significant foothold in electronic bill payment technologies to enhance our extensive payments capabilities."
Pat Foy, president of the Fiserv Bank Servicing and Electronic Payments Group, said Fiserv sees strong demand from its client base for electronic payment services.
"There is considerable opportunity for BillMatrix to expand on its current client base, and we believe we can leverage the company's success in the biller-direct market to offer more options to our clients. Financial institutions can also use BillMatrix's services for their own expedited payment needs and to resell the company's services to their corporate customers."
BillMatrix's employees and its president and CEO, Scott Walker, will join Fiserv after the acquisition.
(c) 2005 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com http://www.sourcemedia.com