mFoundry, the mobile banking app specialist founded in 2004 that grew as rapidly as its space, has been sold to FIS.
The Jacksonville, Fla.-based banking and payments giant said Thursday it has agreed to buy the remaining 78% of the Larkspur, Calif.-based mFoundry for about $120 million, adding that to the 22% stake it already had.
The purchase was the second major takeover announced among major credit union technology providers Thursday, joining ACI Worldwide's acquisition of Online Resources Corp., and the third this month, following Fiserv Inc.'s purchase of Open Solutions Inc.
“Consumers have adopted the mobile channel faster than any other delivery channel in existence, and delivering industry-best mobile solutions is a vital focus area for FIS,” said Gary Norcross, FIS president and chief operating officer.
“Our goal is to provide the solutions that underpin an organization's ability to best reach and serve its customers, and the addition of mFoundry plays a key role in that strategy,” Norcross said in a statement.
After cutting its teeth with credit unions, mFoundry took off as a provider of mobile banking and retail technology for large banks, payments processors and retailers, and now has more than 850 clients, including such big names as Starbucks.
Drew Sievers, mFoundry co-founder and CEO, said, “FIS has been a great investment partner for the last several years, and the timing was right for us to combine forces to create the unparalleled industry leader in mobile delivery. This transaction enables us to capitalize on new market opportunities and bring top-tier mobile capabilities to our combined client bases.”
FIS said the transaction is expected to close by the end of the first quarter, pending regulatory approvals and contractual closing conditions., subject to customary regulatory approvals and contractual closing conditions, is expected to close by the end of the first quarter.
FIS said it now has more than 14,000 banking technology and payment processing client institutions in more than 100 countries and employs more than 32,000 people.
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