Fiserv completes acquisition of remaining stake in AIB Merchant Services

MILWAUKEE - Fiserv, Inc. (NYSE:FI), a $74 billion market cap financial technology leader with annual revenue exceeding $21 billion, has completed its acquisition of the remaining 49.9% stake in AIB Merchant Services (AIBMS), the company announced Thursday in a press release. The transaction gives Fiserv full ownership of the joint venture it previously operated with AIB Group.

The acquisition aims to strengthen Fiserv’s position in the European market and expand growth opportunities for its Clover point-of-sale system across the region. AIBMS is described as one of Ireland’s largest payment solution providers and one of Europe’s largest e-commerce acquirers. According to InvestingPro analysis, Fiserv maintains a GOOD financial health rating and appears undervalued at current levels, suggesting potential upside from this strategic expansion.

As part of the agreement, AIB Group will continue to refer businesses requiring card acquiring services to Fiserv on an exclusive basis.

Fiserv, a Fortune 500 company, provides payments and financial services technology globally. The company offers various solutions including account processing, digital banking, card issuer processing, payments, e-commerce, and merchant acquiring services.

Financial terms of the transaction were not disclosed in the announcement.

In other recent news, Fiserv has made significant strides with the acquisition of CardFree, a platform offering order, payment, and loyalty solutions for merchants. This acquisition aims to enhance Fiserv’s Clover point-of-sale solution by integrating drive-through software, kiosk enablement, and third-party software for loyalty programs and delivery services. Additionally, Fiserv announced a leadership change within its Financial Institutions Group, with Andrew Gelb taking over as Head after John Gibbons transitioned to the role of Senior Advisor.

In financial developments, Fiserv secured a new $8 billion revolving credit facility, replacing a previous $6 billion agreement. This facility, arranged with JPMorgan Chase Bank, offers flexible borrowing options in multiple currencies and is set to mature in 2030. On the analyst front, Truist Securities lowered its price target for Fiserv to $170, citing a revised price-to-earnings multiple following the company’s second-quarter earnings report. Similarly, Mizuho reduced its price target to $165 due to concerns over Clover’s growth, despite maintaining an Outperform rating. These developments highlight Fiserv’s ongoing efforts to strengthen its financial and operational capabilities.

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