Fintech Acquisitions Roundup: FIS, Yodlee, SVB Deals (Aug. 12, 2015)
Financial technology investment remains hot, with several fintech providers involved in major acquisitions announced over the past week.
In the largest deal, FIS has signed a definitive agreement to purchase financial software maker SunGard for $9.1 billion in cash and stock. FIS and SunGard have complementary technology solutions and services encompassing retail and corporate banking, payments, risk management, asset solutions and insurance, the companies said. The combined firm will have more than 55,000 employees and clients in more than 100 countries, with $9.2 billion in annual revenue. Wayne, Penn.-based SunGard filed for an IPO in June, but reports soon emerged that the company had entered sales negotiations with FIS. The sale is subject to regulatory approvals and other closing conditions, with closing expected in the third quarter of this year.
Also this week, financial app developer Yodlee Inc. said it will sell all shares of the company to Envestnet Inc., a provider of wealth management technology and services to financial advisers. Yodlee, which went public in 2014, will receive $18.88 per share, or approximately $660 million. Envestnet will use Yodlee’s data aggregation and analytics capabilities to enhance its platform for financial adviser clients, the company said. The deal also brings Yodlee’s 20 million users and 72 patents under the Envestnet umbrella. The deal is expected to close in late 2015 or early 2016, subject to Yodlee stockholder approval and closing conditions.
Finally, Silicon Valley Bank (SVB) has taken over digital banking startup Standard Treasury in an “acqui-hire,” under which Standard Treasury founders Daniel Kimerling and Zachary Townsend have joined SVB’s information technology team. Founded two years ago, Standard Treasury was billed as an “API-first” bank that would offer financial services to fintech startups. After landing $2.7 million in seed funding in early 2014, the company was unable to raise a Series A round. Kimerling and Townsend will now help drive development of SVB’s own API banking services.
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