Acquisition of Finxact today. Yep. Another company to gut. Their CEO will leave. Ironically his name is Frank too. And all these poor employees have no clue what is coming. Prolly being told the same sales pitch we were told when OFD took over. Rah rah. You’re gonna lose your job.
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Just another company Fiserv can suck the life out.
With no data center and everything in the cloud it will be easy for Finxact to pack everything and head to Berkeley Heights. Enjoy the trip!
2/2/2021 he used “first data ventures” to invest in Finxact. Ironic since first data no longer existed at that point. Good riddance to the legacy account processing cores. Bet you won’t see many more sales once he gets this cloud core In house.
https://www.cbinsights.com/investor/first-data-ventures
Frank was personally invested in Finxact so he just bought himself with a nice payout.
This is how to build fintech wealth 101. Start a 'competitor' to the big three, then sell to one of the big three.
But $650 million for a company with 120 employees? That sounds about three times too high.
I just hope the employees of Finxact had some equity compensation along with their cash pay. No one is d-mb enough to work for a late stage start up with no equity, are they? Hope not.
I am happy for anyone with equity. They just had a damn nice payday. That being said, I feel bad for the employees whose culture is about to be destroyed, have suffocating processes piled upon them, and are going to be forced to move to an 'approved' go-forward location.
@yyx+1fbRPGx8 Hopefully your name isn’t in a recruiting database…I’m sure Frank will go looking for disloyal Frankserv employees
What a great way to dramatically increase Fiserv's "Goodwill".
This is typically behavior of a company in the very late business cycle like Fiserv.
However, they need to transform themselves first, and fast, before they keep ki----g off the very qualities of the companies they acquire.
Frank Bisignano, CEO, Fiserv, says: "This transaction complements our Fiserv account processing solutions and expands our opportunities to serve clients by bringing together Finxact’s highly flexible and scalable API-first capabilities with the comprehensive digital financial solutions portfolio and expertise of Fiserv."
The expertise he's pushing out the door? 650m for a less than 8 year old company? Cannot wait to hear the spin about this, head fake for poor guidance tomorrow?
Had a recruiting call last week for a position at Finxact. Was supposed to be full remote. Welp. Better to find out now than in six months I suppose.
If clover were the crown jewel, then why the weekly spread the word about clover email propaganda?
This is actually pretty comical when you think about it. The whole point of Finxact was to be a disrupter of the big three. The ABA invested serious capital into the company, as did OFD, to challenge the market dominance of OFS, FIS, and JHA. The quotes in the article (link below) by the president of the ABA and the founder of Finxact stated that there wasn't enough "innovation" within these existing companies (paraphrase). Yeah...Good luck with that innovation, mmmmmkay?
https://www.jaxdailyrecord.com/article/finxact-tech-firm-building-the-future-of-banking-in-jacksonville
Clover still NOT Square and for the money Toast is a better value. OnDot... good product, many have left on their own jury's still out on that. Yes just Fiserv's weight brings every organization down. interesting high number of WFH employees.
You don’t know what you are talking about. We acquired Clover and it is a crown jewel. We bought OnDot and it is doing well.