Fiserv Announces JV with Deutsche Bank

Fiserv (FISV) has entered into a joint venture agreement with Germany’s largest bank, Deutsche Bank Ag (DB), to create a comprehensive platform for payment acceptance and banking solutions, enhancing the customer experience in a rapidly changing post-COVID scenario.

Fiserv is a leading global provider of payment and financial services technology in the U.S. (See FISV stock chart on TipRanks)

The combination of Fiserv’s popular point-of-sale platform, Clover, with Deutsche Bank products, will create a “one-stop-shop” for thousands of clients across 800,000 SMEs, leading to a better client experience, lower costs and reduced complexity. SME clients will be able to sell their products and services across a comprehensive range of digital and in-person channels.

Furthermore, both companies intend to bring multiple payment solutions together, complementing Deutsche Bank’s banking offering. This will save merchants from entering multiple contracts with a variety of payment providers.

Subject to certain regulatory approvals, the JV will cater to small and medium-sized enterprises (SMEs) in Germany and be based in Frankfurt.

John Gibbons, Head of EMEA at Fiserv, commented, “Together with Deutsche Bank, we will be able to help small and mid-sized enterprises in Germany do business in new ways, bringing them a compelling combination of solutions and services to streamline their payment acceptance and banking capabilities.”

Robert W. Baird analyst David Koning recently maintained a Buy rating and a price target of $148 (37.6% upside potential) on the stock.

Koning continues to favor the stock as he believes that Fiserv presents the fastest and most consistent growth in earnings, driven by improved spending at restaurants and strong economic indicators, like mobility and resurging air travel.

Overall, the stock has a Strong Buy consensus rating based on 10 Buys and 3 Holds. The average Fiserv analyst price target of $142.45 implies 32.4% upside potential from current levels.