News

FIS acquires mobile banking startup mFoundry

January 31, 2013

Add mobile banking to the list of services FIS will offer to FIs. The banking and payments technology giant announced today that it has agreed to acquire mobile banking startup mFoundry. The company already owned 22 percent interest in mFoundry and will purchase the remaining 78 percent for $120 million.

"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," said FIS president and CEO Gary Norcross in a statement. "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."

MFoundry provides mobile banking solutions to more than 850 financial institutions including one-third of the top 50 largest banks. PNC Bank and Bank of America are both clients. The company was also behind Starbucks' popular mobile payment application.

"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," said mFoundry CEO and co-founder Drew Sievers. "This transaction enables us to capitalize on new market opportunities and bring top-tier mobile capabilities to our combined client bases."

The deal between FIS and mFoundry is subject to contractual conditions and regulatory approval; the companies expect that it will be completed by the end of the first quarter.

Read more about transaction processing.