Fifth Third acquires cash management software leader DTS Connex

CINCINNATI - Fifth Third Bancorp (NASDAQ:FITB), a financial institution with a market capitalization of $28.28 billion and a solid financial health score according to InvestingPro, has acquired DTS Connex, a provider of cash management software solutions for multi-location businesses, effective August 1, the bank announced Wednesday.

DTS Connex, which serves retailers, restaurants, and healthcare providers, will continue to operate as a wholly owned subsidiary while maintaining its independence as a stand-alone business. Financial terms of the transaction were not disclosed. According to InvestingPro analysis, Fifth Third appears undervalued based on their proprietary Fair Value calculations, with the company maintaining strong fundamentals including a P/E ratio of 13.22.

The acquisition enhances Fifth Third’s Commercial Payments business with expanded capabilities in cash logistics offerings, infrastructure, and risk management. DTS Connex’s technology solutions address complex needs of clients seeking to increase efficiency and oversight in cash logistics management.

"This acquisition expands our ability to automate cash operations and fosters deeper collaboration across the cash ecosystem through advanced data sharing," said Bridgit Chayt, head of Commercial Payments at Fifth Third.

Fifth Third currently ranks as the sixth-largest commercial payments provider by revenue, generating $7.993 billion in revenue over the last twelve months. The bank processed $17 trillion in payments volume in 2024 and holds top five market share positions in six payment categories, according to a 2023 Cash Management Services Survey administered by EY. InvestingPro data reveals the company has maintained dividend payments for 51 consecutive years, demonstrating consistent financial stability. For deeper insights into Fifth Third’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

The bank ranks second in coin and currency revenue and retail lockbox remittances, third in wholesale lockbox remittances, and fifth in account reconciliations.

This acquisition follows Fifth Third’s previous technology investments, including the May 2023 acquisitions of Big Data Healthcare LLC and Rize Money, Inc. The bank subsequently launched Newline by Fifth Third, an embedded payments platform that has been adopted by companies including Trustly and Stripe.

According to the press release, DTS Connex will maintain its commitment to serving clients with the same level of service as before the acquisition. With analysts predicting continued profitability for Fifth Third this year, the acquisition appears well-positioned to contribute to the company’s growth trajectory.

In other recent news, Fifth Third Bancorp reported its second-quarter 2025 earnings, surpassing Wall Street’s expectations. The company achieved an earnings per share of $0.88, slightly above the forecast of $0.87, and reported revenue of $2.25 billion, exceeding the anticipated $2.22 billion. Additionally, Fifth Third Bancorp announced a strategic partnership with Eldridge to offer private credit solutions to its Commercial Bank clients, aiming to provide flexible financing options in the private credit market. On the analyst front, Truist Securities raised its price target for Fifth Third Bancorp to $48.00 from $44.00, maintaining a Buy rating due to an improved net interest income outlook and better charge-offs. DA Davidson also reiterated its Buy rating with a price target of $47.00, although it noted that the company expects moderated loan growth and tempered full-year fee income growth. Despite these developments, Fifth Third’s management has slightly lowered its earnings per share forecasts. These recent updates reflect ongoing strategic and financial adjustments within the company.

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