Fiserv Signs Definitive Agreement To Acquire BillMatrix Corp.

Leslie M. Muma, Fiserv president and chief executive officer, said the acquisition of BillMatrix will enable Fiserv to expand its capabilities in electronic bill payment.

"It's no secret that Americans are increasingly using the Internet and the telephone to electronically pay their bills," Muma said. "The acquisition of BillMatrix gives Fiserv a significant foothold in electronic bill payment technologies to enhance our extensive payments capabilities." BillMatrix, founded in 1994, provides billers with an outsourced payment solution that allows their customers to get immediate credit for bills paid online or over the phone using electronic checks, debit cards or credit cards. The company's more than 120 clients include utilities, telecommunications providers, insurance companies and lenders.

Electronic transactions made up 36 percent of the estimated 17.7 billion consumer bill payments initiated in the U.S. in 2004 compared with 23 percent of total bill payments in 2001, according to Celent Communications. The share of electronic transactions is expected to increase to 56 percent of total bill payments by 2007, which is approximately a 16 percent compound annual growth rate from 2004.

Pat Foy, president of the Fiserv Bank Servicing and Electronic Payments Group, said Fiserv is seeing strong demand from its financial institution client base for electronic bill-pay solutions.

"There is considerable opportunity for BillMatrix to expand on its current client base, and we believe we can leverage the company's success in the biller-direct market to offer more options to our clients," Foy said. "Financial institutions can also use BillMatrix's services for their own expedited payment needs and to resell the company's services to their corporate customers."

BillMatrix's employees and its president and chief executive officer, Scott B. Walker, will join Fiserv after the acquisition is completed. BillMatrix is based in Dallas. The majority of the company's stock is owned by Great Hill Partners, a Boston private equity firm, and other outside investors, while the remainder is owned by management and employees.

Walker said the acquisition by Fiserv will enable BillMatrix to continue its track record of strong growth. "This is a very exciting time in the history of BillMatrix because we are joining with a company that not only understands payments, but also values the entrepreneurial spirit that is so much a part of our company," Walker said. "Through Fiserv, we will have access to capital and other resources that we can use to improve our current offerings to clients and to pursue additional growth and new market opportunities."