Fiserv To Acquire CheckFree

Fiserv Inc. (NASDAQ: FISV), a provider of technology solutions to the insurance industry, and CheckFree Corporation, (NASDAQ: CKFR), which offers financial e-commerce services and products, today announced they have entered into a definitive agreement, whereby Fiserv will acquire CheckFree in an all-cash transaction valued at approximately $4.4 billion.

Under terms of the agreement, CheckFree shareholders will receive $48.00 in cash for each share of common stock, said Brookfield, Wis.-based Fiserv.

According to the announcement, CheckFree, which deals in online banking, electronic payments, and infrastructure and services, and Fiserv, a provider of information management services to the financial and insurance industries, have “complementary technology, services and business models.”

Fiserv said it anticipates the combined organization will deliver “a wider range of product and service offerings for customers, as well as provide opportunities for improved growth and enhanced efficiency, including the ability to bring new solutions to market faster.”

CheckFree, based in Norcross, Ga., has positions in electronic billing and payment, online banking, investment management technology solutions, ACH payments, and fraud and risk management, among others, the announcement noted. Fiserv serves almost 6,000 core processing clients and all top 100 banks in the U.S.

Jeffery Yabuki, president and chief executive officer of Fiserv, said: “An important objective of the transaction is to tightly integrate electronic bill payment and settlement capabilities with our core account processing and risk management solutions to create a unique value proposition unrivaled in the marketplace today.”

In conjunction with the closing of the transaction, CheckFree Chairman and Chief Executive Officer Pete Kight will be employed by Fiserv and appointed to its board of directors, the company said.