Brookfield financial services technology company Fiserv Inc. announced Wednesday it acquired a fast-growing tech company located in Silicon Valley to expand its digital card services capabilities.
Terms of Fiserv's deal to buy San Jose, California-based Ondot Systems were not disclosed.
Founded in 2011, Ondot says it provides more than 4,500 banks and credit unions with a digital card services platform and processes more than 1 billion transactions per month. The company employs more than 300 people in its offices around the U.S. and India, including Atlanta, where Fiserv also has offices.
Ondot recently recently ranked No. 227 on Deloitte's 2020 Technology Fast 500 ranking, a list of the fastest-growing technology companies in North America based on percentage revenue growth between 2016 and 2020. Ondot grew 527% in that period and has raised more than $51 million from investors, including Intel Capital and CitiVentures.
“The importance of digital has accelerated and consumers are increasingly turning to online and mobile banking, as well as contactless payments experiences,” said Frank Bisignano, president and CEO of Fiserv, in a statement. “By combining Ondot and Fiserv capabilities at scale, we plan to provide our clients with a unified digital experience, spanning card-based payments, digital banking platforms, core banking, and merchant solutions, enabling them to deliver best-in-class solutions that continue to reduce friction for their customers."
The deal is expected to close in the first quarter of 2021.
“The Fiserv aspiration to move money and information in a way that moves the world fully resonates with Ondot’s mission,” said Vaduvur Bharghavan, president and CEO of Ondot Systems. “Joining with Fiserv will provide Ondot the opportunity to innovate and impact the industry on a global scale. We look forward to expanding the scope of our offerings as we integrate with Fiserv’s vast array of capabilities to continue providing high-quality digital solutions to consumers, merchants, acquirers, networks and card issuers.”
Fiserv (Nasdaq: FISV) recently reported sales increases of 27% for its third quarter, leading to revenue of $3.79 billion, a 21% increase when compared with the year-ago quarter.
Fiserv reported total revenue of $10.9 billion for year ending Dec. 31, 2019, which was 75% higher than $5.82 billion recorded the previous year.
