FIS Acquiring Mobile Banking Startup mFoundry For $120 Million

Posted Feb 1, 2013

FIS is acquiring mFoundry for $120 million.  FIS is a banking and payment provider that works with around 14,000 banks worldwide.  The company already had a 22% stake in the company and the purchase of the 78% in cash is based on a valuation of $162-$165 million.  mFoundry provides mobile banking and payment solutions to around 850 banks and retailers including Starbucks and Bank of America.  mFoundry’s technology is used as a mobile payment platform.  The deal is expected to close between 2 and 4 weeks.  mFoundry investors include GRP Partners, Intel, Motorola and MasterCard.

mFoundry has raised $40.3 million since being founded in 2004.  The company has especially grown in the last few years.  ?mFoundry has a well-earned reputation for innovation, powerful vision and agile development,? stated FIS president and COO Gary Norcross. ?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.?

Below is a press release about the acquisition:

JACKSONVILLE, Fla., Jan. 31, 2013 ? Expanding on its leadership position in mobile financial services, FIS? (NYSE: FIS), the world?s largest provider of banking and payments technology, today announced it has signed a definitive agreement to acquire the remaining 78 percent interest in mFoundry, a foremost provider of mobile banking and payment solutions for financial institutions and retailers. Previous to this transaction, FIS held a 22 percent interest in the company. The addition of mFoundry creates one of the leading mobile entities in the financial services space and enables FIS to leverage its technology assets across a broader client base.

?mFoundry has a well-earned reputation for innovation, powerful vision and agile development and delivers one of the most advanced mobile platforms in the market today,? noted Gary Norcross, FIS president and chief operating officer. ?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. 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.?

Founded in 2004 and serving more than 850 clients, mFoundry?s customer-focused solutions have become a leading platform for mobile banking and mobile retail and have been adopted by some of the largest banks, credit unions, payments processors and retailers in the country.

Commenting on the transaction, Drew Sievers, mFoundry co-founder and chief executive officer stated, ?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 anticipates paying approximately $120 million in cash to acquire the remaining 78 percent ownership interest in mFoundry. The transaction, subject to customary regulatory approvals and contractual closing conditions, is expected to close by the end of the first quarter.

About mFoundry
mFoundry is North America?s largest provider of mobile banking and mobile payments services. The leading software-as-a-service (SaaS), cloud-based mobile banking offering, mFoundry works with more than 850 banks and credit unions nationwide, including Bank of America, PNC Bank, Zions Bank and more than one-third of the top 50 financial institutions in the U.S. mFoundry is headquartered in Larkspur, California, with offices in downtown San Francisco. For more information, visit http://www.mfoundry.com.

About FIS FIS (NYSE: FIS) is the world?s largest global provider dedicated to banking and payments technologies. With a long history deeply rooted in the financial services sector, FIS serves more than 14,000 institutions in over 100 countries. Headquartered in Jacksonville, Fla., FIS employs more than 32,000 people worldwide and holds leadership positions in payment processing and banking solutions, providing software, services and outsourcing of the technology that drives financial institutions. First in financial technology, FIS tops the annual FinTech 100 list, is 425 on the Fortune 500 and is a member of Standard & Poor?s 500® Index. For more information about FIS, visit http://www.fisglobal.com.

[Source: TechCrunch]