I am hearing chatter that a portion of Fiserv will be bought by a competitor..........
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Point of merging FD with FI was to keep FD solvent. It was circling the drain.
If they sell off the cores what would have been the point of merging FD with FI?
This is why some companies merge acquired software before embarking on a different acquisition. They do it militantly and finish with 1 or 2 years. I always wondered why
@2yav+1n2mcVqr is spot on. It isn't like a processor could just acquire and take control of the assets. Fiserv's data centers are so convoluted they would have to deconvert and then convert. Very tedious project and EXPENSIVE. And then there's the issue of multiple platforms, Unisys, Tandem etc. Who would want that conversion headache?
It would take 15 or more years to convert all those accounts to a new processor. That's the problem with having so many different core banking silos. Who would want fr or 5 different products doing the same thing? If they had a different acquirer for each core product it might go smoother but all of them at once? I don't see it.
Some companies create and deliver, some are vehicles for private equity wealth generation. Fiserv is the latter, does not mean they are bad.
And this acquisition will come with a bunch of debt and KKR will conveniently convert their shares to cash at Fiserv's expense.
Fiserv is making a move into a payment adjacent space. It’s a huge add to the portfolio and a multi billion dollar acquisition. Stay tuned
I don’t think it’s the cores. FB wanted FDC to merge with FISV for exactly that - to provide core banking, something he’d much more familiar with that First Data’s processing system for credit cards.
Selling off Cores would seriously damage cross-selling all their products. There is zero chance they could or would do it. Merging the smaller Core(s) like Cleartouch into Signature or DNA could create some synergies.
I would have thought the FIG is being spun off but looks like consensus is the cores
Makes the most sense since cutting back staff in the extreme is common tactic in preparing to sell (make profit margins look larger) - and that leads to disaster in the long-term if its not the plan.
I've assumed for a while that the plan is to ultimately sell the core systems, either one by one or all together. It's why they've cut them to the bone from a staffing perspective. Reap those benefits now of saved labor while prepping it for a scrap heap sale.
Please be mine. Can't be worse than this
Please let it be my group. I don't think there could be a place worse than this.
Which portion?
If this ever happens you can be sure that it won’t affect the acquiring business.
Opined here many times since 2020, I once would have said be careful what you wish for but don't think it can get much worse.
Former employee now working for a Fiserv FI.. Been on both sides of the train wreck.
I've heard this for years too but I see this gaining more ground with what's going on lately.
I hope and wish.. this rumor has been for a while