FIS is to pay $120m to transform its minority 22% shareholding in mobile financial services firm mFoundry into full ownership
The deal is subject to the usual regulatory approvals but is expected to be finalised by the end of Q1 this year.
mFoundry is a largely North American based mobile banking and payments technology provider with clients such as Bank of America (BofA) and previous investment from MasterCard, PayPal and others received as it has developed over the last seven years.
According to Gary Norcross, president and chief operating officer (COO) of FIS, the rationale behind the deal is to deliver industry-leading mobile solutions, which is crucial growth area for FIS. “Our goal is to provide the solutions that underpin an organisation's ability to best reach and serve its customers, and the addition of mFoundry plays a key role in that," he explained.
The co-founder of the company being brought out, Drew Sievers of mFoundry, is also keen on the deal, adding: "FIS has been a great investment partner for the last several years, and the timing was right for us to combine forces to create an industry leader in mobile delivery. This transaction enables us to capitalise on new market opportunities and bring top-tier mobile capabilities to our combined client bases."