FIS, a leading global provider of technology and services to the payments industry, has agreed in principal to acquire Brussels-based payments technology vendor Clear2Pay for approximately €375 million ($493 million).
Clear2Pay, a global leader in its own right and already includes 40 of the world’s top 50 financial institutions as clients, was in part acquired for its popular Open Payments Framework which allows financial institutions to process multiple payments types via a centralized payments engine. However, the Open Payments Framework only represents one of the many attractive assets acquired by FIS in the deal.
“Many institutions are struggling to adapt to the evolving global payments landscape, inclusive of high-value and cross-currency corporate payments and new channels,” said Gary Norcross, president and chief operating officer of FIS, in an article on Finextra . “This strategic acquisition demonstrates our commitment to delivering the technologies and assets that will enable our clients, especially large and global institutions, to realize a truly modern payments environment that encompasses all customer channels, simplifies payment operations, reduces costs and provides a better customer experience.”
According to FIS, the deal is expected to be closed during the fourth quarter of 2014, a represents a major acquisition for the company that reported $620 million in revenue and EBITDA of $264 million from payments-related sales in the first quarter of 2014.
The move by FIS to acquire Clear2Pay represents a significant investment on the part of FIS and its acquisition will only further boost FIS in Europe and globally and provide greater support to FIS’s range of available payment technologies and services.
To read the full story, go to Finextra.