Payfare Inc., a Toronto-based earned wage access company, has announced it will be acquired by Fiserv Inc., a global provider of payments and financial technology. The transaction, valued at approximately $201.5 million, represents a significant premium of 90 per cent over Payfare’s closing price on the Toronto Stock Exchange as of Dec. 20, 2024, the last trading day before the announcement.
Under the terms of the deal, Fiserv will pay $4.00 in cash per Payfare share. The acquisition is subject to shareholder and court approvals, along with other customary closing conditions, and is expected to be finalized in the first half of 2025. Upon completion, Payfare shares will be delisted from the TSX and the OTCQX, and the company will cease to be a reporting issuer under Canadian securities laws.
“This transaction represents tangible recognition of the value and strength of what Payfare has built,” said Marco Margiotta, Payfare’s CEO and founding partner. “It provides certainty of value with an all-cash offer.”
Frank Bisignano, chairman and CEO of Fiserv, said the acquisition will bolster the company’s workforce payments offerings. “Together, we can accelerate the delivery of embedded finance solutions for all of our clients,” he said.
Payfare’s board of directors, following a strategic review process led by a special committee of independent directors, unanimously approved the deal. The committee concluded that the offer was in the best interests of the company and its stakeholders. Voting support agreements have been secured from directors and senior officers, representing about 11.3 per cent of Payfare’s outstanding shares.
The deal requires approval from two-thirds of the votes cast by Payfare shareholders and a majority of votes excluding certain directors and officers, in line with Canadian securities regulations. A special meeting of shareholders will be scheduled to vote on the transaction.
Payfare, which provides instant access to earnings and digital banking solutions for gig-economy workers, has partnered with leading e-commerce platforms and payroll providers. Fiserv, headquartered in Brookfield, Wisconsin, is a Fortune 500 company specializing in payments, digital banking, and merchant solutions.