Wednesday, July 6, 2011

Fiserv acquires CashEdge

Fiserv (FISV) has acquired CashEdge Inc. for $465 million in cash. "CashEdge provides an attractive suite of solutions to further enable the delivery of a highly differentiated payments experience for financial institutions and their customers, as well as accelerate the coming P2P movement," said Jeffery Yabuki, President and CEO.

This moves fits with Fiserv’s history of making smaller strategic acquisitions. Management believes the transaction will be neutral to 2011 EPS, and positive in 2012. It will be interesting to see how this move impacts the rate of share repurchases. The board authorized an additional 7.5 million shares in May, and UASBIG’s model assumes that total will be spread evenly over the next eight quarters. At this time there is not enough evidence to update the target price, which stands at $72.49 or 12% above today’s close of 64.75.


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