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To amplify its ambit of e-commerce offerings to companies of all sizes in any industry, Fidelity National Information Services (FIS - Free Report) announced that it acquired Payrix, an innovative financial technology firm. Terms of the deal are undisclosed. The acquisition is not expected to affect FIS’s fourth-quarter and 2021 financial results.
Pioneering in issuing, deposit, lending, business-to-business and global payments solutions, Fidelity will capitalize on and integrate its portfolio of banking and payments assets with Payrix’s cutting-edge embedded payments solutions to create state-of-the-art and differentiated experiences for any sized business.
The acquisition move of Payrix forms a differentiated solution for platforms seeking to embed payments facility, apart from offering platforms an opportunity to expand operations globally. It also delivers new competencies, including fully digital and automated compliance, billing and settlement as well as onboarding. These facilities will enable FIS to rapidly expand into new market segments, especially the high growth small- and medium-sized business e-commerce segment.
Stephanie Ferris, president at FIS, remarked, "Bringing the Payrix capabilities inside FIS enables us to continue our journey of serving e-commerce as well as platform companies. The acquisition of Payrix is an excellent proof point of FIS’ ability to unlock the value of our broad portfolio of solutions as companies of all sizes rely on FIS as a destination for innovation to advance how the world pays, banks and invests."
Our Take
The booming payments industry has seen some strategic actions taken of late. Fidelity’s attractive core business, with a recurring revenue model and investments in digital products, keeps it well positioned for growth. Also, its strong capital position allows it to undertake opportunistic expansion strategies.
The stock has declined 3.1%, narrower than the industry’s 8% fall over the past three months.
Several companies from the finance sector are making consolidation efforts to improve competencies to counter the low interest-rate environment.
Walker & Dunlop, Inc. (WD - Free Report) inked a deal to acquire GeoPhy, a commercial real estate technology company. The transaction, expected to be complete during the first quarter 2022, is subject to approvals.
Per the terms of the transaction, Walker & Dunlop will pay $85 million in cash at the closing in addition to $205 million of cash earn-out potential. This cash earn-out potential is structured to directly align with WD’s Drive to '25 goals.
Truist Financial Corporation’s (TFC - Free Report) subsidiary Truist Insurance Holdings, Inc. signed an agreement to acquire Kensington Vanguard National Land Services. The deal is expected to close during the first quarter of 2022. Details of the transaction are not yet disclosed.
The transaction is expected to aid Truist Insurance in expanding its business in title insurance. The existing title operation of TFC is BridgeTrust Title, which will likely be integrated with Kensington Vanguard.
Victory Capital Holdings, Inc. (VCTR - Free Report) acquired full ownership of WestEnd Advisors, LLC on Dec 31, 2021. The deal, previously announced in November, represents VCTR’s third acquisition that closed in 2021. The transaction adds a dimension of growth and diversification to VCTR’s portfolio. WestEnd will become VCTR’s 12th investment franchise.
With Victory Capital’s strong presence on major financial intermediary platforms and an extensive distribution coverage, it remains well-positioned to continue supporting WestEnd’s growth trajectory.
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Fidelity (FIS) Buys Payrix, Boosts E-commerce Capabilities
To amplify its ambit of e-commerce offerings to companies of all sizes in any industry, Fidelity National Information Services (FIS - Free Report) announced that it acquired Payrix, an innovative financial technology firm. Terms of the deal are undisclosed. The acquisition is not expected to affect FIS’s fourth-quarter and 2021 financial results.
Pioneering in issuing, deposit, lending, business-to-business and global payments solutions, Fidelity will capitalize on and integrate its portfolio of banking and payments assets with Payrix’s cutting-edge embedded payments solutions to create state-of-the-art and differentiated experiences for any sized business.
The acquisition move of Payrix forms a differentiated solution for platforms seeking to embed payments facility, apart from offering platforms an opportunity to expand operations globally. It also delivers new competencies, including fully digital and automated compliance, billing and settlement as well as onboarding. These facilities will enable FIS to rapidly expand into new market segments, especially the high growth small- and medium-sized business e-commerce segment.
Stephanie Ferris, president at FIS, remarked, "Bringing the Payrix capabilities inside FIS enables us to continue our journey of serving e-commerce as well as platform companies. The acquisition of Payrix is an excellent proof point of FIS’ ability to unlock the value of our broad portfolio of solutions as companies of all sizes rely on FIS as a destination for innovation to advance how the world pays, banks and invests."
Our Take
The booming payments industry has seen some strategic actions taken of late. Fidelity’s attractive core business, with a recurring revenue model and investments in digital products, keeps it well positioned for growth. Also, its strong capital position allows it to undertake opportunistic expansion strategies.
The stock has declined 3.1%, narrower than the industry’s 8% fall over the past three months.
Fidelity carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Inorganic Growth Efforts by Other Firms
Several companies from the finance sector are making consolidation efforts to improve competencies to counter the low interest-rate environment.
Walker & Dunlop, Inc. (WD - Free Report) inked a deal to acquire GeoPhy, a commercial real estate technology company. The transaction, expected to be complete during the first quarter 2022, is subject to approvals.
Per the terms of the transaction, Walker & Dunlop will pay $85 million in cash at the closing in addition to $205 million of cash earn-out potential. This cash earn-out potential is structured to directly align with WD’s Drive to '25 goals.
Truist Financial Corporation’s (TFC - Free Report) subsidiary Truist Insurance Holdings, Inc. signed an agreement to acquire Kensington Vanguard National Land Services. The deal is expected to close during the first quarter of 2022. Details of the transaction are not yet disclosed.
The transaction is expected to aid Truist Insurance in expanding its business in title insurance. The existing title operation of TFC is BridgeTrust Title, which will likely be integrated with Kensington Vanguard.
Victory Capital Holdings, Inc. (VCTR - Free Report) acquired full ownership of WestEnd Advisors, LLC on Dec 31, 2021. The deal, previously announced in November, represents VCTR’s third acquisition that closed in 2021. The transaction adds a dimension of growth and diversification to VCTR’s portfolio. WestEnd will become VCTR’s 12th investment franchise.
With Victory Capital’s strong presence on major financial intermediary platforms and an extensive distribution coverage, it remains well-positioned to continue supporting WestEnd’s growth trajectory.