Fiserv To Buy Canada's Payfare In C$201.5 Mln Cash Deal

(RTTNews) - Fiserv, Inc. (FI), a provider of payments and financial services technology, announced Monday that it has entered into a definitive agreement to acquire Payfare Inc. (PAY.TO), a Canadian provider of program management solutions.

In its statement, Payfare said it will be bought by 1517452 B.C. Ltd., an affiliate of Fiserv, for C$4.00 in cash per share, for total consideration of approximately C$201.5 million.

According to Payfare, the deal price represents a premium of around 90% to the closing price on the Toronto Stock Exchange on December 20, the last trading day prior to the announcement, and a premium of approximately 92% to the 60-day volume weighted average trading price of common shares as at that date.

The deal follows a thorough strategic review process, which evaluated numerous acquisition, commercial partnership, and other opportunities.

Fiserv noted that the acquisition is subject to obtaining shareholder and court approvals and other customary closing conditions and is expected to close in the first half of 2025.

Fiserv said the deal would complement its embedded finance solutions with Payfare offerings, such as card program management, a white-label consumer app, and a microservices orchestration layer.

Frank Bisignano, Chairman, President and Chief Executive Officer of Fiserv, said, "Payfare has built a reputation as an innovator in workforce payments for gig-economy companies. Together, we can accelerate the delivery of embedded finance solutions for all of our clients, empowering their next chapter of success."