M&A activity remains at a steady pace in the payments industry as platform integration, omnichannel, and small business solutions continue to be targets of interest. Fiserv just announced its planned acquisition of Pineapple Payments that is already a current partner.
While a small-sized company itself that began in 2016, Pineapple brings fast track growth of its own to Fiserv as it has scaled up to a current client base of over 25,000 merchants. One area of note to watch is Pineapple’s healthcare market solutions as this is a vertical that still has high growth potential for payments providers.
The following excerpt from a Yahoo! Finance article reports more on the topic:
Fiserv, Inc. announced yesterday that it has agreed to acquire its key distribution partner and Pennsylvania-based payments technology company, Pineapple Payments.
The deal, subject to customary approvals and closing conditions, is anticipated to close in the second quarter of this year. Financial terms have been kept under wraps.
Frank Bisignano, president and chief executive officer of Fiserv, said, “With Pineapple Payments already operating as a key distribution partner of Fiserv, we expect to accelerate the delivery of new and innovative capabilities to a host of new merchant clients.”
Notably, Fiserv’s shares have charted a solid trajectory in recent times, appreciating 18.2% over the past six months, ahead of the 5% rise of the industry it belongs to and 16.8% rally of the Zacks S&P 500 composite.
Overview by Raymond Pucci, Director, Merchant Services at Mercator Advisory Group