Fiserv, Inc. (FI), a leading entity in payments and financial services technology, announced on Monday its definitive agreement to acquire Payfare Inc. (PAY.TO), a Canadian firm specializing in program management solutions.
Payfare's statement detailed that it will be acquired by 1517452 B.C. Ltd., a Fiserv affiliate, at a cash price of CAD 4.00 per share, totaling approximately CAD 201.5 million.
The acquisition proposal offers a premium of roughly 90% over the closing price on the Toronto Stock Exchange as of December 20, the last trading day before the announcement, and about a 92% premium relative to the 60-day volume-weighted average trading price of common shares as of that date.
This decision emerged from an extensive strategic review process by Payfare, which assessed multiple acquisition possibilities, commercial partnerships, and alternative opportunities.
Fiserv highlighted that the transaction is contingent upon shareholder and court approvals, along with other standard closing stipulations, and anticipates completion in the first half of 2025.
The acquisition aims to enhance Fiserv's suite of embedded finance solutions with Payfare’s expertise in areas like card program management, a white-label consumer application, and a microservices orchestration layer.
Frank Bisignano, Fiserv's Chairman, President, and CEO, expressed, "Payfare has garnered a reputation for innovation in workforce payments for gig economy enterprises. Collaboratively, we aim to expedite the delivery of embedded finance solutions to our clients, facilitating their continued success."
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