Financial Tech Sector Eyes Acquisitions
Financial Tech Sector Eyes Acquisitions
September 23, 2005
Financial information technology companies such as SunGard Data Systems, Fiserv and Automatic Data Processing are on the prowl for acquisitions because they are looking for growth avenues after operating conservatively between 2000 and 2004. Michael Maxworthy, founding partner of Marlin Associates, an investment bank specializing in the media and technology sector in New York, said these businesses have built huge cash reserves and are looking to acquisitions to keep up in a highly competitive environment. Ken Jensen, cfo of Fiserv, said the company has made about six acquisitions in 2005 and is actively looking for candidates going forward. A representative from SunGard declined comment and representatives from Automatic Data did not return calls by press time.
Marlin represented Derivative Solutions in its sale to FactSet Research Systems for $42.5 million in cash and 305,748 shares last month.