Continuing its trend of acquiring financial technology startups and integrating them into its business to expand its digital offerings, Brookfield-based Fiserv Inc. bought two more companies in the second quarter: Pineapple Payments of Pittsburgh, and Dublin, California-based SpendLabs.
Fiserv (Nasdaq: FISV) bought payment technology company Pineapple Payments, which was founded in 2016, for "approximately $206 million," according to Fiserv's second-quarter report filed July 27 with the U.S. Securities and Exchange Commission.
Fiserv acquired commercial card payment software company SpendLabs, which was founded in 2013, on June 14, according to the report. It bought SpendLabs and Radius8 Inc., which it acquired on March 1, for an aggregate purchase price of about $49 million, according to the report. Fiserv acquired Radius8 for "approximately $14 million," according to its first-quarter report.
Fiserv integrated SpendLabs and Ondot Systems Inc., which it acquired on Jan. 22 for around $270 million, to create enhanced, mobile-first digital banking capabilities for its financial institution customers, according to a Monday announcement.
"I think you'll also see us continuing the strategy of taking Silicon Valley digital expertise and capability, integrate it into our company, and fundamentally creating experiences that nobody in our peer group can do," said Fiserv president and CEO Frank Bisignano, commenting on the acquisitions in an earnings call on Tuesday.
To illustrate the strategy, Bisignano cited Clover, the small business point-of-sale system that Fiserv gained through its $22 billion acquisition of First Data Corp. in 2019. Clover was founded in Sunnyvale, California, in 2010 and acquired by First Data in 2012, according to Crunchbase.
Clover is part of Fiserv's merchant acceptance segment, which grew 43% in adjusted revenue to $1.67 billion in the second quarter, compared with $1.17 billion last year. Fiserv's total second-quarter adjusted revenue was $3.86 billion, up 20% compared with $3.22 billion in the same period a year ago.
"I think you'll see us continue to do those type of acquisitions that drive the digital presence," Bisignano said on the earnings call.
Fiserv announced the Pineapple Payments acquisition in March but did not disclose terms. It closed the Pineapple Payments deal on May 4 "for approximately $206 million, net of $6 million of acquired cash, and including earn-out provisions estimated at a fair value of $30 million," the report stated.
