And then there were four...Fiserv acquires Open Solutions
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15 January 2013
On January 14 Fiserv announced that it closed the acquisition of the equity of Open Solutions for $55 million. At this size the deal was not subject to regulatory review. The result: there are now only four major U.S. based Core Solutions providers: Fiserv, FIS, Jack Henry and Harland. Fiserv touted three key strategic benefits to the transaction:
- An expanded base of account processing clients,
- The “high quality and innovative technology” of Open Solutions’ DNA platform, and
- The wise use of Fiserv’s capital.
- How much did defense factor into Fiserv’s strategic calculus – that is, did it pursue this acquisition to prevent a foreign entity from purchasing Open Solutions?
- How well will Fiserv be able to integrate DNA into its current Acumen offering, and will it meet its 24-month target?
- Fiserv spent a lot of time discussing the implications for Credit Unions; what should banks currently running on DNA expect to come out of this?
- What will happen with DNA vis a vis Fiserv Premier, Precision and Cleartouch? Might DNA customers be encouraged to move to Premier or Precision? And might Cleartouch users be migrated to DNA?
- What must Jack Henry and Harland be thinking?