Financial technology giant Fiserv Inc. announced Feb. 7 it agreed to buy Jacksonville-based banking technology firm Finxact Inc.
Fiserv was an early investor in Finxact, which was founded in 2016. Finserve will pay about $650 million to acquire the remaining ownership interest in the company.
Finxact CEO Frank Sanchez, who co-founded the company with his brother Michael, is a former executive of Jacksonville-based Fidelity National Information Services Inc., Fiserv’s major competitor.
The Finxact headquarters is on the Downtown Southbank in Riverplace Tower.
Sanchez told the Daily Record in 2019 he started Finxact to provide technology for smaller regional and community banks that are not getting the solutions they need from larger companies.
“Joining with Fiserv is a tremendous opportunity for Finxact,” Sanchez said in a news release.
“We recognize that Finxact’s technology can serve to level up the industry’s delivery infrastructure, and crucially at a time when banking is undergoing transformative changes. We will be better positioned to serve a far greater number of institutions, of all sizes, when combined with the breadth and depth of Fiserv capabilities,” he said.
“Through this combination, Fiserv will create a streamlined path for clients to offer digital solutions to their customers,” Fiserv CEO Frank Bisignano said in the release.
“Finxact also enhances our ability to support a growing number of financial institution and business clients,” he said.
Wisconsin-based Fiserv reported revenue of $11.97 billion in the first nine months of 2021. It is scheduled to report its full year results on Feb. 8.