By Lisa Kerner
Charlotte, N.C., Aug. 2 - Fiserv, Inc. agreed to acquire CheckFree Corp. for $48 per share of common stock in an all-cash deal valued at about $4.4 billion.
The transaction is expected to be completed by Dec. 31 subject to CheckFree shareholder approval. Fiserv said following the transaction's close, it expects to realize more than $100 million in annualized cost savings and more than $125 million in annualized revenue synergies.
"CheckFree's industry-leading payment and Internet banking capabilities will significantly accelerate our strategic transformation, extending our service platform to the largest financial institutions," Fiserv president and chief executive officer Jeffery Yabuki stated in a company news release.
CheckFree chairman and CEO Pete Kight will join Fiserv and will also be appointed to the company's board of directors.
Fiserv was advised by Credit Suisse and Sullivan & Cromwell LLP. CheckFree is being advised by Goldman, Sachs & Co. and Wachtell, Lipton, Rosen & Katz.
Based in Brookfield, Wis., Fiserv provides information management systems and services to the financial and insurance industries. CheckFree is a Norcross, Ga., provider of financial e-commerce services and products.
| Acquirer: | Fiserv, Inc.
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| Target: | CheckFree Corp.
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| Transaction total: | $4.4 billion
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| Price per share: | $48.00
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| Announcement date: | Aug. 2
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| Expected closing: | By Dec. 31
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| Stock price for target: | Nasdaq: CKFR: $36.83 on Aug. 1
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