News
Fiserv completes acquisition of CheckFree
December 3, 2007
BROOKFIELD, Wis. — Fiserv Inc., provider of information-technology services to the financial industry, has completed its acquisition of CheckFree Corp., provider of financial electronic-commerce services and products, including electronic bill payment and Internet banking.
According to a news release, Fiserv acquired CheckFree for approximately $4.4 billion in cash, $48 per share.
The transaction was funded with a combination of debt instruments, including $2.5 billion in proceeds from a five-year-term loan, $1.75 billion in proceeds from publicly issued five- and 10-year notes, and proceeds from its credit facilities.
Fiserv was advised by Credit Suisse and Sullivan & Cromwell LLP. CheckFree was advised by Goldman, Sachs & Co. and Wachtell, Lipton, Rosen & Katz.
"Combining our two companies' broad range of market-leading capabilities will provide a platform to deliver unprecedented innovation in financial-services technology," said Jeffery Yabuki, Fiserv's president and chief executive. "CheckFree's key strengths — world-class products and a culture of dynamic innovation — will accelerate our Fiserv 2.0 strategies resulting in a client value proposition unrivaled in the market today. Both companies have been strong, and together we will be even stronger."
More than 3,000 financial services Web sites use the electronic-billing and payment services provided by CheckFree. CheckFree also touts having the market-leading online banking platform for financial institutions.
CheckFree's client base of large FIs are expected to complement Fiserv's base of more than 18,000 clients.
Fiserv says the newly combined company has the expertise, solutions and scale to support FIs of any size in core processing, electronic billing, risk management, payments (including cash and logistics, ACH, imaging, online, phone, emergency and walk-in) and wealth management/managed accounts.
"CheckFree has defined innovation in online banking, electronic-billing and payment, financial software and payment infrastructures, and the delivery of investment services technology for managed accounts," said Pete Kight, CheckFree's former chairman and chief executive.
The combined company's pro-forma revenue for 2006 was more than $4.5 billion (excluding the previously announced sales of Fiserv ISS and Fiserv Health), serves more than 21,000 customers in 275 locations worldwide, and has more than 25,000 employees.
New management
Yabuki will continue to serve as CEO and president of Fiserv Inc., and Donald F. Dillon will continue to serve as chairman of the board. Tom Hirsch will continue as the company's chief financial officer.
Kight will be named vice chairman of Fiserv and will lead new-product development and strategic integration. Kight also will join the board of directors. Steve Olsen, former chief operating Officer of CheckFree, will become Fiserv's group president of Internet Banking and Electronic Payments. Olsen will lead the company's bill payments, Internet banking, treasury/cash management and investment management businesses.
The company also announced that Norm Balthasar, senior executive vice president and chief operating officer, will retire from his position Dec. 31. Balthasar will remain with the company through June 30, 2008, to ensure a seamless transition.
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