Fiserv Inc (
recently signed a contract with Texas-based Randolph-Brooks
Federal Credit Union (RBFCU) to implement the DNA account
processing system. The RBFCU, which manages assets worth $5.5
billion, selected Fiserv's DNA platform to upgrade its enterprise
infrastructure to better serve more than 430K members.
FIDELITY NAT IN (FIS): Free Stock Analysis
FISERV INC (FISV): Free Stock Analysis Report
GLOBAL PAYMENTS (GPN): Free Stock Analysis
MASTERCARD INC (MA): Free Stock Analysis
To read this article on Zacks.com click here.
Fiserv's DNA account processing solution has gained significant
momentum in recent times. The solution won 5 new contracts in the
second quarter, making it a total of 10 in the first half of
2013. The DNA banking platform was the primary reason behind
Fiserv's acquisition of Open Solutions early this year.
DNA was Open Solutions' flagship product and had more than 800
customers at the time of acquisition. The acquisition of the DNA
platform is expected to expand Fiserv's customer base, going
forward. Most of the DNA contracts are long term in nature, which
is significant. These will be a recurring revenue source for
Fiserv, going forward.
Fiserv expects the synergies from the Open Solutions acquisition
to exceed the original revenue and expense target of $75.0
million and $50.0 million, respectively. The acquisition is
expected to be significantly accretive to earnings per share,
Accretive acquisitions have been a key growth factor for Fiserv
over the years. They have helped Fiserv expand its foothold in
the financial and payment solutions business through its
diversified product portfolio and continued technology upgrades.
The company's advanced products are likely to further enhance its
This is evident from the fact that the company signed 98 new
clients, which helped it to expand its total number of clients
for the Mobiliti solution to 1,600 at the end of the second
Client demand for the Popmoney solution continues to remain
strong as Fiserv signed 64 new institutions in the quarter.
During the quarter, Fiserv signed 71 electronic bill payment
clients and 38 debit processing clients.
We believe that various contract wins and accretive acquisitions
will help Fiserv to fight stiff competition from
Global Payments (
in the near term.
However, a volatile macroeconomic environment, banking and
financial service consolidation, poor cash flow, higher amount of
debt and increasing industry regulations are the primary
Currently, Fiserv has a Zacks Rank #3 (Hold).