Fiserv
said in a press release Monday that it will buy the remaining ownership stake
in Finxact for about $650 million.
“We’re accelerating the delivery of innovative digital banking experiences
for our clients and elevating their ability to compete in a rapidly changing
market,” Frank Bisignano, Fiserv’s president and CEO, said in the release.
“This transaction complements our Fiserv account processing
solutions and expands our opportunities to serve clients by bringing together
Finxact’s highly flexible and scalable API-first capabilities with the
comprehensive digital financial solutions portfolio and expertise of Fiserv,” Bisignano
added.
The transaction will be a windfall for Live
Oak, which expects to realize a pretax gain of
about $115 million from the deal.
Live Oak has a roughly 15% stake in Finxact and Chip Mahan, the bank's chairman and CEO, is on the fintech's board.
The $8.2 billion-asset Live
Oak asked Finxact to build an open, real-time core system in 2017, providing
some of the initial $12 million in capital to help create the fintech-friendly
platform.
The Finxact core works with software from 14 partners,
including Apiture, Marqeta, LexisNexis and Savana.
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