28th Feb, 2011. Fiserv, Inc. (NASDAQ: FISV), the leading global provider of financial services technology solutions, today announced that it has acquired Mobile Commerce Ltd. (M-Com), an international mobile banking and payments provider, to enhance Fiserv’s existing mobile channel capabilities.
The two companies have been partners since 2008, developing and delivering Mobile Money from Fiserv to hundreds of financial institutions. Financial terms of the acquisition were not disclosed, however Fiserv announced it had acquired 3 firms in Q1 FY11 for US$49m with M-Com being the most significant.
Founded in New Zealand in 2000, M-Com has developed a reputation as a mobile banking and payments player with global aspirations. The company says that won’t change. It predicts the deal will open the door for Fiserv to sell to its foreign clients. Meanwhile, it will keep pushing to expand its share of the U.S. market, where M-Com and Fiserv boast that Mobile Money has 200 clients for the ASP and licensed products, including about 150 FIs that are live
M-Com CEO Adam Clark and all employees of M-Com will join Fiserv as part of the transaction.
“Technology advancements and consumer usage patterns are converging across online and mobile channels,” said Steve Olsen, group president, Digital Payments, Fiserv. “The acquisition of M-Com will enhance our ability to provide anywhere, anytime access to consumers who want their finances at their fingertips. Together, we will deliver best-in-class digital solutions for our clients, enabling a superior user experience for their customers.”
As strategic partners, Fiserv and M-Com have hundreds of mutual customers in the U.S. and several in international markets, and the combination of the two companies will accelerate the development of innovative solutions for these clients. In addition, Fiserv will have the ability to integrate M-Com mobile banking and payment technology into current product offerings, as well as leverage that technology for transformative new solutions. Current M-Com clients will benefit from Fiserv’s digital banking and payments expertise, deep resources and ongoing investments in mobile financial services.
“Offering robust services through the mobile channel is now critical for financial institutions,” said Mr. Clark. “With the addition of M-Com’s proven technology and deep employee expertise, Fiserv is positioned to continue delivering with excellence in the rapidly evolving mobile space, both domestically and internationally. Together, we will set the pace for mobile banking and payments.”
Headquartered in Atlanta, Ga., M-Com is an international mobile banking and payments solution provider with live Fortune 500 banking customers across Asia Pacific, the Middle East, Europe and North America. M-Com’s core proposition is centered on helping financial institutions and payment processors deliver world class adoption and revenue metrics from the mobile channel.
Morgan Keegan acted as financial advisor to M-Com in its acquisition by Fiserv.
Fiserv, Inc. (NASDAQ: FISV) is the leading global provider of information management and electronic commerce systems for the financial services industry, driving innovation that transforms experiences for financial institutions and their customers. Fiserv is ranked No. 1 on the FinTech 100 survey of top technology partners to the financial services industry.