Mergers and Acquisitions Recap – Q1 2019
This is the current buzzword in the industry, as the competition for supremacy hots up. The question of build vs. buy is dominating boardrooms around the world and at the moment, buy seems to be trumping build.
In this blog, we take a look at some big buys from the last quarter:
Fiserv – First Data
The key to this deal was the way that the two companies complemented each other’s needs. First Data needed issuer payments, which Fiserv brought to the table and Fiserv needed merchant payments which will be duly supplied by First Data. Most people will agree that these companies were highly compatible and therefore that the merger came as no big surprise.
FIS – Worldpay
Worldpay, a combination of Vantiv and Worldpay Group (which happened in 2018), was acquired by FIS in a bid to stay out in front of the competition. FIS provides financial services tech focusing on retail and institutional banking, as well as payments and asses management amongst other things, will see the acquisition of eCommerce and POS giant Worldpay as a fantastic strategic move.
Ant Financial – World First
The acquisition of the UK currency giant World First by the Chinese financial services giant Ant Financial was the company’s first venture into Europe and reinforced the strong market connections between China and Europe.
CBG – IDology
This one comes from the ID and fraud prevention space, with the UK-headquartered ID Data Intelligence company CBG acquiring IDology. The US-based IDology, a provider of identity verification and fraud prevention services was bought for $300m in an all-cash transaction. They are a market leader in the UK and therefore are the perfect strategic complement to GBC’s identity verification solutions.
Mastercard – Ethoca
The credit card behemoth acquired Ethoca, a global leader that provides technology to identify and resolve fraud in digital commerce. The move aims to add to Mastercard’s “multilayered cyber strategy, helping customers take immediate action against fraud and eliminate chargebacks before they can occur.”
Do you think the “buy” trend will continue to dominate due to the sheer pace required to keep up with the competition? Or will companies look to invest in-house to create new and exciting value propositions for customers?