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MILWAUKEE - Fiserv, Inc. (NYSE:FI), a $70.43 billion market cap financial technology leader with annual revenue of $21.11 billion, announced Monday it has signed a definitive agreement to acquire StoneCastle Cash Management, a move that will enable the payments technology provider to become a technology-enabled source of institutional deposits for financial institutions. According to InvestingPro analysis, Fiserv maintains a strong position as a prominent player in the Financial Services industry.
The acquisition will allow Fiserv to help its network of depository institutions, primarily community banks and credit unions, access stable, cost-efficient deposit funding from businesses and enterprise customers holding cash balances. This strategic move comes as Fiserv’s stock trades near its 52-week low of $128.08, having experienced a significant 40% decline over the past six months. InvestingPro data suggests the stock may be undervalued based on its Fair Value analysis, with 8 additional exclusive insights available to subscribers.
"Acquiring StoneCastle is an important step forward in our strategy to help financial institutions optimize their balance sheets, which will enable them to do more in the communities they serve," said Andrew Gelb, Head of Financial Solutions at Fiserv.
Founded in 2009, StoneCastle operates a deposit network that serves over 1,000 FDIC-insured depository institutions, including more than 300 Fiserv core banks. The platform helps optimize deposits from individual, commercial and governmental sources.
Fiserv also plans to leverage StoneCastle’s platform to help financial institutions retain funds associated with FIUSD stablecoin issuance.
"We believe this further sets Fiserv apart in core banking by enabling institutions to custody cash supporting FIUSD stablecoins," said Takis Georgakopoulos, COO at Fiserv.
Joshua Siegel, Founder & Chief Executive Officer of StoneCastle Partners, LLC, said joining Fiserv will "accelerate our ability to innovate, expand our reach to financial institutions and depositors, and deliver even greater value through a unified, modern platform."
The transaction is expected to close by Q1 2026, subject to regulatory approvals and other customary closing conditions. Financial terms were not disclosed, according to the company’s press release statement. Despite recent market challenges, Fiserv maintains a "GOOD" Financial Health Score of 2.51 according to InvestingPro, which offers a comprehensive Pro Research Report detailing the company’s financial strength, growth prospects, and market position among 1,400+ top US stocks.
Keefe, Bruyette & Woods, A Stifel Company, served as exclusive financial advisor to StoneCastle Partners in connection with the transaction.
In other recent news, Fiserv, Inc. has made significant moves to strengthen its services and financial standing. The company completed the acquisition of the remaining 49.9% stake in AIB Merchant Services, giving it full ownership of the joint venture and enhancing its position in the European market. This acquisition aims to expand growth opportunities for its Clover point-of-sale system. Additionally, Fiserv acquired Smith Consulting Group to bolster its banking services, though the financial terms were not disclosed. The company also acquired CardFree to enhance its hospitality payment solutions, adding capabilities like drive-through software and third-party software integration.
In terms of financial strategy, Fiserv secured a new $8 billion revolving credit facility, replacing its previous $6 billion agreement. This facility, arranged with JPMorgan Chase Bank, N.A., allows borrowing in multiple currencies and offers variable interest rates based on currency-specific benchmarks. Furthermore, Fiserv announced a leadership change in its Financial Institutions Group, with Andrew Gelb taking over as Head following John Gibbons’ transition to Senior Advisor. These developments reflect Fiserv’s ongoing efforts to expand its market reach and enhance its service offerings.
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