Fiserv announced that it has acquired Open Solutions, a leading provider of collaborative, enterprise core account processing technology for financial institutions. The purchase price was $55 million, and Fiserv assumed approximately $960 million of debt.
Open Solutions is a technology provider to banks, thrifts and credit unions. Through this acquisition, Fiserv will add several new technologies to its offerings, including DNA, a real-time, open technology account processing platform. DNA is an attractive alternative for financial institutions that seek a modern technology architecture and want to benefit from the power of data and integration. The platform also enables collaboration and technology-sharing through DNAcreator and DNAappstore to deliver localized and unique customer-facing value.
Open Solutions serves more than 3,300 clients worldwide, including more than 800 account processing clients. Open Solutions provides several growth opportunities, including a real-time account processing capability that serves multiple charter types, languages and currencies on a single platform, comments Jeffery Yabuki, CEO, Fiserv. Open Solutions strong team of associates is intently focused on client success and committed to collaborative technology, which will enhance the value we provide to our clients.
The company expects to achieve annualized revenue synergies in connection with the acquisition of at least $75 million, and annualized cost synergies in excess of $50 million, over the next several years. The transaction was completed on January 14, 2013.