Payments and fintech firm Fiserv has completed the acquisition of Payfare, which offers instant payout and banking solutions to gig economy workers.
Payfare’s co-founders and employees have joined Fiserv as part of the deal.
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The company purchased all issued and outstanding shares of Payfare at C$4.00 apiece, for a value of C$193.15m.
The deal was announced in December last year.
This acquisition is said to complement Fiserv’s embedded financial solutions by adding card programme management and a white-label consumer application.
Combined with Fiserv’s processing, bank ledgers, and services, Payfare’s offerings will provide a complete solution for embedded banking, payments, and lending.
Payfare’s shares will now be delisted from the Toronto stock exchange (TSX) and OTCQX.
The transaction was carried out through a court-approved plan of arrangement under the Business Corporations Act (British Columbia).
The financial advisory for Payfare was managed by Keefe, Bruyette, & Woods, and Blair Franklin Capital Partners advised the Special Committee.
Legal counsel was provided by Borden Ladner Gervais and Dentons for Payfare, while Blake, Cassels & Graydon and Foley & Lardner served as external legal advisors to Fiserv.
Last month, Fiserv reported a net income of $938m for the fourth quarter of 2024, an increase from $870m in the same quarter of the previous year.
For the full year, it reported net income of $3.13bn, up from $3.07bn in 2023.
Additionally, the firm repurchased 6.1 million shares for $1.3bn in the fourth quarter and 33.9 million shares for $5.5bn over the full year 2024.
