Advertisement

Fiserv to Acquire Holding Company of XP Systems

Share via
TIMES STAFF WRITER

For businesses looking to grow, it generally doesn’t hurt to have the backing of a corporation with $1 billion in annual revenue. That’s the position XP Systems of Moorpark should be in by late September.

Pending Securities and Exchange Commission approval, Fiserv Inc., a Wisconsin-based provider of data-processing and information-management systems for the financial industry, will purchase Envision Financial Technologies. Envision was formed two years ago as a holding company for the unification of XP Systems and the Pennsylvania-based Users Inc.

Officials of XP Systems, a provider of data-processing hardware and software for the credit-union industry, see the transaction as the best of both worlds.

Advertisement

“We will have the financial strength of Fiserv and the independence to operate XP as its own company,” said Bill Anderson, chief operating officer of XP Systems, founded in 1962. “It certainly opens doors to us that XP as an independent company wouldn’t have access to in investment and funding.”

XP Systems’ primary product is Focus XP, a software system that allows credit unions to manage customer services and operations, including Internet home banking and bill paying. Currently about 270 credit unions nationwide are using the system. Anderson said the credit union market has even greater potential.

“As an industry, nationally, you’re looking at over 11,000 institutions, with total assets somewhere around $385 billion,” he said. “There’s always a need for this technology. If you look at the financial-services industry there always are new needs and new applications. For credit unions it’s important to have the technology in place to provide traditional and evolving services.”

Anderson said none of XP Systems’ 188 employees is expected to be laid off due to the Fiserv transaction.

“Fiserv acquires companies because of the management and staff and products of these companies,” he said. “If you look at their acquisitions, they stick with them. XP would look to Fiserv not only for stability but also to have other companies that complement our main focus.”

Fiserv serves more than 10,000 banks, credit unions, mortgage companies and other financial institutions through a list of about 80 acquired companies. Leslie Muma, president and chief executive of Fiserv, said XP Systems fits right in with the group.

Advertisement

“It’s an excellent little software company that’s been around for a long time,” he said. “Our plan for that company is to continue to put resources into it. . . . Their future as far as growth is very bright, with ownership by a company that is big and solid.”

At the same time, Muma said, the Moorpark company will retain its independence.

“What we’re buying there is a group of entrepreneurs,” he said.

“We have six different credit-union products that operate as a team, but they also operate with independent presidents, independent sales forces,” he said. “If you took that group and smothered them, you’d destroy them.”

Advertisement