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Fiserv acquires The City POS in USD 26 million deal

Tuesday 6 September 2022 10:08 CET | News

US-based global payments processor Fiserv has acquired independent sales organisation The LR2 Group in a USD 26 million deal.

The LR2 Group does business as The City POS, which was founded in 2003 to provide local merchants with improved customer service, customisable products and expertise according to the company’s website. The City POS also provides payment processing and point-of-sale services.

The acquisition was revealed in Fiserv’s most recent 10-Q filing with the Securities and Exchange Commission. According to analysts cited by paymentsdive.com, the reason why the buyout wasn’t mentioned during Fiserv’s second-quarter earnings conference call is that it only makes up about 0.1% or 0.2% of revenue.

Fiserv officials cited by the same source emphasised that The City POS has been an important ISO partner of Fiserv for over a decade. Another spokesperson revealed that all 11 employees of the Santa Rosa, California-based LR2 Group will be retained.

 

US-based global payments processor Fiserv has acquired independent sales organisation The LR2 Group in a USD 26 million deal.

 

Fiserv’s recent acquisitions and partnerships

Fiserv went on an acquisition spree in the last two years. In February 2022, it purchased Finxact, a company that provides technology for smaller regional and community banks for USD 650 million. In 2021, Fiserv also bought NetPay, BentoBox, SpendLabs, Pineapple Payments, Integrity Payments, Ondot, and Radius 8.

According to its 10-K filing with the SEC in February 2022, Fiserv spent USD 95 million on employee termination costs in 2021, USD 131 million in 2020 and USD 32 million in 2019.

In July 2022, the Financial Services Innovation Lab (FSIL) and Fiserv  partnered on a new initiative to better understand consumer financial health. Through this partnership, Georgia Tech researchers will leverage Fiserv data to generate insights into household financial behaviour. This will be relevant to policy makers, consumers, and small businesses.

In June 2022, Fiserv partnered Advanced Fraud Solutions (AFS), a provider of payments fraud detection solutions. The partnership aims to provide Fiserv clients with the necessary automated tools to check fraud detection, risk-based funds availability, and decision processes, helping to prevent losses and identify fraudulent deposits before they are accepted.

In the same month, the global payments processor joined US-based point of sale systems provider Clover Sport in a bid to enable entertainment venues to deliver fan experiences.

Following this collaboration, fans would benefit from shorter queue lines, while venue operators would benefit from access to management tools, including real-time data and reporting that can be leveraged to optimise operations and increase profitability.


Source: Link


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Keywords: acquisition, payment processor, mobile payments, financial services
Categories: Payments & Commerce
Companies: Fiserv, The City POS
Countries: United States
This article is part of category

Payments & Commerce

Fiserv

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The City POS

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