The consolidation trend in the bank technology solution provider space continues to accelerate, with news today that Jacksonville, Fla.-based FIS has signed a definitive agreement to acquire the remaining 78% interest in mobile banking and payment solutions provider mFoundry. Previous to this transaction, FIS held a 22% interest in mFoundry (Larkspur, Calif.), which was founded in 2004 and now serves more than 850 clients in financial services and retailing. According to a statement from FIS, the addition of mFoundry "enables FIS to leverage its technology assets across a broader client base. "
"mFoundry has a well-earned reputation for innovation, powerful vision and agile development and delivers one of the most advanced mobile platforms in the market today," noted Gary Norcross, FIS president and chief operating officer, in the statement. "Consumers have adopted the mobile channel faster than any other delivery channel in existence, and delivering industry-best mobile solutions is a vital focus area for FIS. Our goal is to provide the solutions that underpin an organization's ability to best reach and serve its customers, and the addition of mFoundry plays a key role in that strategy."
[Read about mFoundry's recently launched updated mobile banking platform.]
Commenting on the transaction, Drew Sievers, mFoundry co-founder and CEO said in the press release, "FIS has been a great investment partner for the last several years, and the timing was right for us to combine forces to create the unparalleled industry leader in mobile delivery. This transaction enables us to capitalize on new market opportunities and bring top-tier mobile capabilities to our combined client bases."
FIS, which describes itself as "the world's largest global provider dedicated to banking and payments technologies," anticipates paying approximately $120 million in cash to acquire the remaining 78% ownership interest in mFoundry. The transaction, subject to customary regulatory approvals and contractual closing conditions, is expected to close by the end of the first quarter.
The FIS/mFoundry deal comes only a few weeks after FIS competitor Fiserv announced it would acquire core systems vendor Open Solutions in a deal expected to generate $75 million in annual revenue and annual savings of around $50 million over the next several years.