D+H Acquires Competitor HFS For $1.2 Billion

Posted by Patrick Barnard on July 24, 2013 No Comments
Categories : Residential Mortgage

Canadian financial services provider Davis + Henderson Corp. (D+H) has agreed to acquire U.S. rival Harland Financial Solutions (HFS) from parent company Harland Clarke Holdings Corp. for about $1.2 billion.

The all-cash deal, which is expected to close in the third quarter, will expand D+H's offerings for online and mobile banking, branch automation and commercial lending, the company said in a release.

Toronto-based D+H, which serves the needs of credit unions, community banks and other financial institutions, is one of the fastest rising companies on the IDC Financial Insights Annual FinTech 100 list. In addition to serving the Canadian market, it also supports more than 1,700 banks and credit unions in the U.S.

HFS, meanwhile, has about 5,400 bank and credit union clients in the U.S.

Through the acquisition, D+H will grow to serve a total of more than 6,200 clients in North America. What's more, it will gain the rights to HFS' PhoenixEFE core processing platform, used by thousands of community banks in the U.S.

‘With proven technology solutions that are mission critical for clients and complementary to our D+H offerings, solid financial performance, including strong cash flows provided under long-term contracts, and an experienced team of approximately 1,350 employees across some 17 locations, HFS adds the scope and scale necessary for D+H to be a trusted market leader in the U.S.," said Gerrard Schmid, CEO of D+H, in a release. "We also believe that this union will allow us to create even more differentiated product offerings by combining our market-leading lending solutions with HFS' strong suite of lending products.’

‘We are excited by the prospect of becoming part of D+H and believe that this transaction is right for both our customers and our employees,’ said Bill Zayas, chief operating officer of HFS, in a separate release. ‘We are joining a growing, trusted, customer-focused organization that is committed to helping clients grow, compete and offer their desired consumer experience. By combining organizations, we'll be well positioned to do even more for customers in the future.’

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