FIS to Buy mFoundry for $120 Million
Mobile banking platform provider mFoundry will be purchased by FIS for about $120 million, FIS announced today.
FIS — officially Fidelity National Information Services — has a market capitalization of $10.81 billion and is one of the major financial services technology companies in the world.
The news comes on the heel of the Jan. 14 deal by FIS competitor Fiserv to acquire Open Solutions Inc. for $50 million, plus the assumption of $960 million in debt. Open Solutions provides core banking technology.
ACI Worldwide also announced plans to buy Online Resources, a provider of payments solutions, for $263 million by February 15.
FIS was already a 22% stakeholder in mFoundry before the acquisition. The $120 million represents the additional 78%.
When you take into account Mfoundry’s customer base, FIS valued the mobile banking tech venture at around $181,000 per customer.
The transaction is subject to regulatory approval and is expected to close by the end of the quarter.
Analysts were not surprised by the move. Mark Schwanhausser of Javelin Strategy & Research called the move “absolutely no surprise.” and added, “This acquisition is another sign that companies like FIS realize that banking without strong mobile is like being a human without a nervous system.”
Jeff Crawford of First Annapolis said the move “makes a lot of sense. We would expect to see more of this.”
See a prognosis for mobile banking here.
