Headlines:
Fiserv: Australia Deal Coming
Fiserv Inc. reported strong results Friday and said it is negotiating a deal to provide check processing and image archiving services for three of Australia's biggest banks.
Leslie M. Muma, the Brookfield, Wis., bank technology outsourcing vendor's president and chief executive, said in a press release that he expects to sign a contract in February with Commonwealth Bank of Australia, National Australia Bank, and Westpac Banking Corp.
"This transaction will enable Fiserv to establish a significant presence in Australia and set the stage for future growth," Mr. Muma said. The contract is expected to be mildly dilutive to earnings this year but to add to earnings next year.
Fiserv's fourth-quarter revenue rose 19.5% from a year earlier, to $966.4 million, while net income rose 18.9%, to $97.5 million, or 49 cents a share. Full-year revenue jumped 27.5%, to $3.7 billion, and full-year net income increased 19.9%, to $377 million, or $1.91 a share.
Fiserv is continuing its stock buyback program. It spent $64.3 million last quarter for 1.7 million shares of its common stock; in November the board authorized a purchase of 10 million shares.
Though Fiserv has a history of growing through acquisitions, it closed only four deals last year. By contrast, Marshall & Ilsley Corp.'s Metavante Corp. made seven purchases last year, and Fidelity National Financial Inc. of Jacksonville, Fla., has made eight since early 2003.
Fiserv expects to post 2005 earnings of $2.16 to $2.23 a share.
"We believe we are well positioned for a strong 2005," Mr. Muma said.
Outsourcer Preps $125M Offer
Open Solutions Inc. of Glastonbury, Conn., is preparing an offering in which it hopes to raise $125 million.
The banking technology provider said Thursday that it had priced a proposed private offering of senior subordinated convertible notes at $29.02 each. With shares of Open Solutions trading Friday midday at about $21.90, the notes would carry a premium of 32.5%.
Open Solutions said it plans to use the proceeds for "working capital and general corporate purposes," which could include acquisitions.
The transaction is expected to close Feb. 2.
AT&T Gets Metavante Contract
AT&T Corp. has received a three-year contract to provide voice and data services to Metavante Corp., the technology subsidiary of the Milwaukee banking company Marshall & Ilsley Corp.
The deal was announced Wednesday. The communications company did not say how much Metavante would pay, except to say the contract was a multimillion-dollar one.
AT&T said it would provide automated data network monitoring for Metavante's banking customers.
Metavante offers data management services to more than 5,000 banks.
