CheckFree Corp. has just made a deal worth $4.4 billion in cash. Fiserv Inc. announced on Thursday that it will buy the electronic payment company to expand its customer base. It is also an opportunity to expand their financial institutions.

CheckFree Corp. had a closing price of $36.83 per share on August 1, but the shareholders will receive a 30 percent premium of $48 per share. Fiserv expects $100 million in annual cost savings and more than $125 million in extra revenue.

“CheckFree’s industry-leading payment and Internet banking capabilities will significantly accelerate our strategic transformation, extending our service platform to the largest financial institutions,” said Jeffery Yabuki, President of Fiserv.

CheckFree currently serves 21 of the top 25 financial institutions in America and processes more than 1 billion transactions every year.

Tags: Fiserv, CheckFree

[via Yahoo! News]

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