Fiserv to Acquire Payfare for CA$201.5 Million

Fiserv, Inc. has announced its acquisition of Payfare Inc. for approximately CA$201.5 million, equating to CA$4.00 per share, representing a substantial premium of about 90% over the last trading price prior to the announcement. The transaction, pending shareholder and court approvals, is expected to close in the first half of 2025 and aims to enhance Fiserv's embedded finance solutions with Payfare's expertise in workforce payments. Both companies' leaders expressed optimism about the merger, highlighting the potential to better serve large enterprises and innovate in the gig economy sector. Payfare's stock will cease to be listed on the TSX and the OTCQX following the acquisition. This strategic move is seen as aligning with Fiserv's goal to empower financial services for its clients, while Payfare's team will gain access to Fiserv's robust technology and scale. The deal marks a significant step in the ongoing trend of consolidation within the financial technology industry.