Summary
Fiserv Inc.'s 2007 Form 10-K highlights a year of significant strategic transformation, dominated by the $4.4 billion acquisition of CheckFree Corporation in December 2007. This major acquisition dramatically expanded Fiserv's electronic commerce capabilities, particularly in electronic bill payment and internet banking, aligning with their "Fiserv 2.0" strategy focused on enhancing client value, innovation, and operational excellence. The company also divested several non-core assets, including CredStar, Fiserv Health, and a majority of its Investment Support Services business, streamlining its portfolio. These strategic moves underscore Fiserv's commitment to focusing on its core strengths in financial institution and insurance services while aggressively expanding into high-growth electronic transaction markets. Investors should note the substantial increase in long-term debt due to the CheckFree acquisition, which will be a key factor in future financial performance and capital management.
Financial Highlights
29 data points| Revenue | $3.68B |
| Cost of Revenue | $979.00M |
| Gross Profit | $2.70B |
| SG&A Expenses | $513.00M |
| Operating Expenses | $2.94B |
| Operating Income | $736.00M |
| Interest Expense | $76.00M |
| Net Income | $439.00M |
| EPS (Basic) | $0.66 |
| EPS (Diluted) | $0.65 |
| Shares Outstanding (Basic) | 666.40M |
| Shares Outstanding (Diluted) | 675.20M |
Key Highlights
- 1Fiserv acquired CheckFree Corporation for approximately $4.4 billion in cash and stock in December 2007, significantly bolstering its electronic commerce and bill payment services.
- 2The company divested several businesses in late 2007 and early 2008, including CredStar, Fiserv Health, and a majority of its Investment Support Services business, as part of a portfolio streamlining effort.
- 3Total revenues grew by 10% to $3.92 billion in 2007, driven by both organic growth and acquisitions, although internal revenue growth slowed to 3% compared to 7% in 2006.
- 4Operating income from continuing operations increased by 10% to $730 million in 2007, with operating margins remaining steady at 18.6% despite integration costs from the CheckFree acquisition.
- 5Long-term debt significantly increased to $5.4 billion at year-end 2007, primarily due to borrowings for the CheckFree acquisition, raising concerns about leverage and future interest expense.
- 6The company continues to invest in product development, with expenses representing approximately 7% of total revenues in 2007, reflecting an ongoing commitment to innovation.
- 7Fiserv has three main business segments: Financial, Insurance, and the newly formed CheckFree segment, though a realignment is expected in 2008.