After making waves a decade ago as an acquirer of other core processors and signer of billion-dollar credit unions to its open relational database platform, Open Solutions Inc. has been sold to its biggest rival.
Fiserv Inc. said Monday it has agreed to pay $55 million for Glastonbury, Conn., based Open Solutions and assume approximately $960 million in debt and a $165 million acquired tax asset, the Wisconsin-based company said.
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"We are extremely proud of the innovative products Open Solutions has developed since its founding in 1992, and the strong business that we have built over the years," said Louis Hernandez Jr., chairman/CEO of Open Solutions, who grew the company, took it public and then private again.
"Joining Fiserv provides us with significant resources that will benefit our clients and increase market momentum,” he said.
Open Solutions serves more than 3,300 clients worldwide, including more than 800 core processing clients, about half of them credit unions. Its DNA platform is its flagship and the company was the first in the credit union space to offer an app store for developers of add-ons to its solution.
Other solutions Fiserv cited in its announcement are the CUnify and TotalPlus account processing platforms, Weiland Account Analysis for commercial account analysis, tools that enable the creation and sharing of client-developed functionality, and Raddon Financial Group, which offers performance consulting services.
"Open Solutions provides several growth opportunities, including a real-time account processing capability that serves multiple charter types, languages and currencies on a single platform," said Fiserv President/CEO Jeffery Yabuki.
"Open Solutions' strong team of associates is intently focused on client success and committed to collaborative technology, which will enhance the value we provide to our clients," he said.
Fiserv had launched Acumen, its answer to DNA for large credit unions, in 2009 and said now it expects to add some of the features contained in its Acumen account processing platform to DNA. About 30 credit unions have committed to that platform.
“This combination will provide financial institutions — including credit unions, banks and thrifts — with a technology platform that enables the delivery of a differentiated experience along with integrated solutions,” Fiserv said in its announcement.
The transaction was completed on Monday, the company said.