Fiserv Inc. Completes Acquisition of Payfare, Enhancing Embedded Finance Solutions
1. Major Acquisition Announcement
On March 3, 2025, Fiserv, Inc. (NYSE: FI), a prominent global provider of payments and financial services technology solutions, announced the successful completion of its acquisition of Payfare Inc. (TSX: PAY). This strategic move is expected to bolster Fiserv's suite of embedded finance solutions, particularly in the realm of program management tailored for new economy workforces.
2. Strengthening Embedded Financial Solutions
The acquisition of Payfare adds significant value to Fiserv's existing capabilities in embedded finance. Payfare specializes in card program management and offers a white-label consumer application that aligns seamlessly with Fiserv's strengths in processing, bank ledgers, and integrated value-added services. The combination aims to create a comprehensive solution for embedded banking, payments, and lending, enhancing customer experience and operational efficiency for businesses that rely on these services.
3. Details of the Acquisition
Fiserv’s acquisition was executed through its wholly owned subsidiary, 1517452 B.C. LTD. According to the announcement, this subsidiary acquired a total of 48,287,259 shares of Payfare, which represented 100% of the issued and outstanding shares at a price of C$4.00 per share. The total value of the transaction amounted to C$193,149,036, subject to adjustments related to any validly exercised rights of dissent as per the applicable laws.
Prior to this transaction, Fiserv’s subsidiary did not hold any shares in Payfare, indicating a complete takeover of the company. Consequently, Payfare's shares will no longer be listed on the Toronto Stock Exchange (TSX) or quoted on the OTCQX, with plans for the subsidiary to apply for Payfare to cease being a reporting issuer.
4. Compliance and Reporting Obligations
In accordance with Canadian securities regulations, Fiserv's subsidiary will file an early warning report regarding the acquisition. This report will be available under Payfare’s profile on SEDAR+, ensuring compliance with the National Instrument 62-104 Take-Over Bids and Issuer Bids and related reporting requirements.
5. About Fiserv
Fiserv, Inc. is recognized as a Fortune 500 company and a leader in the payments and financial technology landscape. The company is dedicated to facilitating the movement of money and information globally, helping clients achieve optimal results through innovative solutions. Fiserv's offerings encompass a broad range of services, including account processing, digital banking solutions, card issuer processing, and the Clover® cloud-based point-of-sale and business management platform. The company is also a member of the S&P 500® Index and has been recognized as one of Fortune® World’s Most Admired Companies™.
As Fiserv continues to enhance its service offerings through strategic acquisitions like Payfare, it reaffirms its commitment to innovation and excellence in the financial technology sector.