BROOKFIELD, Wis. (1/15/13)--Financial services technology solution provider Fiserv Inc. announced Monday it has acquired core processor Open Solutions Inc. for $55 million.
Fiserv also assumed about $960 million of debt through the deal, which was completed Monday. It will receive an acquired tax asset with a net present value at the time of the purchase of roughly $165 million.
The Glastonbury, Conn.-based Open Solutions provides technology to credit unions and other financial institutions.
The acquisition means that Brookfield, Wis.-based Fiserv will add several new technologies to its offerings, including DNA, a real-time open technology account processing platform that will enable collaboration and technology sharing through DNAcreator and DNAappstore to deliver service.
Other technologies acquired include the CUnify and TotalPlus account processing platforms, Weiland Account Analysis for commercial accounts, tools that enable the creation and sharing of client-developed functionality, and Raddon Financial Group, a performance consulting service.
Founded in 1992, Open Solutions serves more than 3,300 clients worldwide, including more than 800 account processing clients. Fiserv will offer these clients add-on solutions such as its CheckFreeRXP electronic bill payment service, ACCEL/Exchange payments network, debit processing services, Popmoney social payments service, Corillian Online banking, Mobiliti mobile banking, and more.
"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, Fiserv president/CEO.
Louis Hernandez Jr., Open Solutions chairman and CEO, noted that "joining Fiserv provides us with significant resources that will benefit our clients and increase market momentum."
Fiserv said it expects to add some of its Acumen account processing platform features to the DNA technology platform over time. During the next several years, it expects annualized revenues of at least $75 million and annualized costs of more than $50 million related to the purchase.