Payments processing giant Fiserv has entered into an agreement to acquire Brazilian financial technology company Money Money, Fiserv said Wednesday.
The move is expected to bolster Fiserv’s point-of-sale unit, Clover, in providing financing to small businesses in the South American country, a news release said.
Money Money’s “technology and expertise complement Clover's strategy of supporting the development of Brazilian (small and medium-sized businesses) in their payment, management, and cash flow needs,” the release said. Milwaukee-based Fiserv expects to close the acquisition in the second quarter of this year.
The disclosure of the Money Money deal follows Fiserv’s December announcement regarding the launch of Clover in Brazil.
"This brings the total number of Clover countries to 13," Fiserv President Michael Lyons said during an earnings call Thursday. "We are particularly excited about the Brazil opportunity, given our size, scale and momentum in the country,” said Lyons, who is also the company’s incoming CEO.
A Fiserv spokesperson declined to say how much the company will pay to acquire Money Money. The Brazilian company provides capital and other financial services to small businesses, Fiserv said.
Clover's capital services and those of Money Money will be integrated as part of the development of the offering for clients in Brazil, the release said. The aim is to pitch those services, including risk analysis technology, in personalized offers at competitive rates.
Businesses that receive financing through Clover’s financing arm, called Clover Capital, will be offered a range of payment plans, according to the release, which did not provide details.
“By adding this service to our portfolio, we take an important step to boost the growth of our acquiring clients, facilitating their access to the necessary resources to invest in improvements and processes,” Fiserv's general manager for Brazil, Jorge Valdivia, said in the news release.
The deal will build off Fiserv's past success in countries like Brazil, analysts said. Clover launched in Brazil in December and entered Australia in March.
Purchasing Money Money is the latest in a number of acquisitions the company has made in the past several years. Most recently Fiserv said it had acquired the Dutch payments solutions provider CCV.
“This appears to be a logical progression to build on the success of Clover Capital,” TD Cowen analyst Bryan Bergin said of the Money Money deal in a note to investors Wednesday.
“The acquisition appears small (likely adding about 0.1% to Fiserv's total revenue), but is an interesting addition to help accelerate Clover in Brazil,” Baird analyst David Koning wrote in a separate note to investors Wednesday.
Koning estimated that Money Money generates $17 million in annual revenue and has financed 1,361 companies, citing publicly available data.
Fiserv CEO Frank Bisignano has been nominated to lead the Social Security Administration. He testified in a confirmation hearing last month, but a Senate vote on his nomination has not yet been scheduled
