Fiserv Signs Definitive Agreement To Acquire BillMatrix Corp., Provider of Expedited Electronic Bill Payment Services
Fiserv Signs Definitive Agreement To Acquire BillMatrix Corp., Provider of Expedited Electronic Bill Payment Services
July 27, 2005
Fiserv Signs Definitive Agreement To Acquire BillMatrix Corp., Provider of Expedited Electronic Bill Payment Services
Leslie M. Muma, Fiserv president and chief executive officer, said the acquisition of BillMatrix will enable Fiserv to expand its capabilities in electronic bill payment.
"It's no secret that Americans are increasingly using the Internet and the telephone to electronically pay their bills," Muma said. "The acquisition of BillMatrix gives Fiserv a significant foothold in electronic bill payment technologies to enhance our extensive payments capabilities." BillMatrix, founded in 1994, provides billers with an outsourced payment solution that allows their customers to get immediate credit for bills paid online or over the phone using electronic checks, debit cards or credit cards. The company's more than 120 clients include utilities, telecommunications providers, insurance companies and lenders.
Electronic transactions made up 36 percent of the estimated 17.7 billion consumer bill payments initiated in the U.S. in 2004 compared with 23 percent of total bill payments in 2001, according to Celent Communications. The share of electronic transactions is expected to increase to 56 percent of total bill payments by 2007, which is approximately a 16 percent compound annual growth rate from 2004.
Pat Foy, president of the Fiserv Bank Servicing and Electronic Payments Group, said Fiserv is seeing strong demand from its financial institution client base for electronic bill-pay solutions.
"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," Foy said. "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 chief executive officer, Scott B. Walker, will join Fiserv after the acquisition is completed. BillMatrix is based in Dallas. The majority of the company's stock is owned by Great Hill Partners, a Boston private equity firm, and other outside investors, while the remainder is owned by management and employees.
Walker said the acquisition by Fiserv will enable BillMatrix to continue its track record of strong growth. "This is a very exciting time in the history of BillMatrix because we are joining with a company that not only understands payments, but also values the entrepreneurial spirit that is so much a part of our company," Walker said. "Through Fiserv, we will have access to capital and other resources that we can use to improve our current offerings to clients and to pursue additional growth and new market opportunities."
Fiserv has a comprehensive payments business that includes processing of debit/ATM transactions, credit cards, checks, currency and lockbox, as well as cash management products and services, Internet bill payment and presentment, plastic card production, statement mailing and automated clearinghouse (ACH) solutions.
BillMatrix was advised on the transaction by the investment banking firm of Lane, Berry & Co.
Founded in 1994, BillMatrix Corp. provides outsourced, high-tech alternatives to traditional payment methods using the latest automated interface technologies. BillMatrix works with more than 120 companies to supplement paper-based methods of remittance with convenient, efficient and cost-effective electronic payments. Consumers, customer service representatives and other third-party agents are able to make payments via hosted Internet and telephone systems using credit cards, ATM/debit cards and electronic check payment options. For more information, visit www.BillMatrix.com.
Fiserv, Inc. (Nasdaq: FISV) provides information management systems and services to the financial and health benefits industries, including transaction processing, outsourcing, business process outsourcing and software and systems solutions. The company serves more than 16,000 clients worldwide, including banks, credit unions, financial planners/investment advisers, insurance companies and agents, self-insured employers, lenders and savings institutions. Headquartered in Brookfield, Wis., Fiserv reported $3.4 billion in processing and services revenues for 2004. Fiserv was ranked the largest provider of information technology services to the U.S. financial services industry in the 2004 FinTech 100 survey by the American Banker newspaper and the Financial Insights research firm. Fiserv can be found on the Internet at www.fiserv.com.
The disclosure set forth above contains forward-looking statements, specifically statements regarding estimated revenues in 2006, expected acquisition earnings impact in 2005 and 2006, the closing date for the acquisition and the anticipated growth of the electronic bill payment industry. These statements are covered by the safe harbor included in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to inherent assumptions, risks and uncertainties that may cause actual results to differ materially from those contemplated by such forward-looking statements. The factors that may cause actual results to differ materially from those contemplated by the forward-looking statements include, among others, the demand for electronic bill payment services, pricing and other actions by competitors and delays in completing the transaction. These factors should be considered in evaluating the forward-looking statements and undue reliance should not be placed on such statements.
Fiserv Signs Definitive Agreement To Acquire BillMatrix Corp., Provider of Expedited Electronic Bill Payment Services
BROOKFIELD, Wis.--July 27, 2005--Fiserv, Inc. (Nasdaq:FISV) announced today that it signed a definitive agreement to acquire BillMatrix Corp., a provider of expedited electronic bill payment services, adding a fast-growing niche to its already significant payments business. BillMatrix is expected to generate revenue of approximately $90 million in 2006. The purchase price is approximately $350 million, and the transaction is expected to close in the third quarter. The transaction is expected to be neutral to earnings in 2005 and slightly accretive to earnings in 2006.Leslie M. Muma, Fiserv president and chief executive officer, said the acquisition of BillMatrix will enable Fiserv to expand its capabilities in electronic bill payment.
"It's no secret that Americans are increasingly using the Internet and the telephone to electronically pay their bills," Muma said. "The acquisition of BillMatrix gives Fiserv a significant foothold in electronic bill payment technologies to enhance our extensive payments capabilities." BillMatrix, founded in 1994, provides billers with an outsourced payment solution that allows their customers to get immediate credit for bills paid online or over the phone using electronic checks, debit cards or credit cards. The company's more than 120 clients include utilities, telecommunications providers, insurance companies and lenders.
Electronic transactions made up 36 percent of the estimated 17.7 billion consumer bill payments initiated in the U.S. in 2004 compared with 23 percent of total bill payments in 2001, according to Celent Communications. The share of electronic transactions is expected to increase to 56 percent of total bill payments by 2007, which is approximately a 16 percent compound annual growth rate from 2004.
Pat Foy, president of the Fiserv Bank Servicing and Electronic Payments Group, said Fiserv is seeing strong demand from its financial institution client base for electronic bill-pay solutions.
"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," Foy said. "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 chief executive officer, Scott B. Walker, will join Fiserv after the acquisition is completed. BillMatrix is based in Dallas. The majority of the company's stock is owned by Great Hill Partners, a Boston private equity firm, and other outside investors, while the remainder is owned by management and employees.
Walker said the acquisition by Fiserv will enable BillMatrix to continue its track record of strong growth. "This is a very exciting time in the history of BillMatrix because we are joining with a company that not only understands payments, but also values the entrepreneurial spirit that is so much a part of our company," Walker said. "Through Fiserv, we will have access to capital and other resources that we can use to improve our current offerings to clients and to pursue additional growth and new market opportunities."
Fiserv has a comprehensive payments business that includes processing of debit/ATM transactions, credit cards, checks, currency and lockbox, as well as cash management products and services, Internet bill payment and presentment, plastic card production, statement mailing and automated clearinghouse (ACH) solutions.
BillMatrix was advised on the transaction by the investment banking firm of Lane, Berry & Co.
Founded in 1994, BillMatrix Corp. provides outsourced, high-tech alternatives to traditional payment methods using the latest automated interface technologies. BillMatrix works with more than 120 companies to supplement paper-based methods of remittance with convenient, efficient and cost-effective electronic payments. Consumers, customer service representatives and other third-party agents are able to make payments via hosted Internet and telephone systems using credit cards, ATM/debit cards and electronic check payment options. For more information, visit www.BillMatrix.com.
Fiserv, Inc. (Nasdaq: FISV) provides information management systems and services to the financial and health benefits industries, including transaction processing, outsourcing, business process outsourcing and software and systems solutions. The company serves more than 16,000 clients worldwide, including banks, credit unions, financial planners/investment advisers, insurance companies and agents, self-insured employers, lenders and savings institutions. Headquartered in Brookfield, Wis., Fiserv reported $3.4 billion in processing and services revenues for 2004. Fiserv was ranked the largest provider of information technology services to the U.S. financial services industry in the 2004 FinTech 100 survey by the American Banker newspaper and the Financial Insights research firm. Fiserv can be found on the Internet at www.fiserv.com.
The disclosure set forth above contains forward-looking statements, specifically statements regarding estimated revenues in 2006, expected acquisition earnings impact in 2005 and 2006, the closing date for the acquisition and the anticipated growth of the electronic bill payment industry. These statements are covered by the safe harbor included in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to inherent assumptions, risks and uncertainties that may cause actual results to differ materially from those contemplated by such forward-looking statements. The factors that may cause actual results to differ materially from those contemplated by the forward-looking statements include, among others, the demand for electronic bill payment services, pricing and other actions by competitors and delays in completing the transaction. These factors should be considered in evaluating the forward-looking statements and undue reliance should not be placed on such statements.