Dive Brief:
- Payments processor Fidelity National Information Services has acquired Amount, a fintech that provides deposit and loan origination software, according to a Wednesday news release.
- Chicago-based Amount provides consumer and small-business deposit and loan origination software. FIS said Amount will expand the services it can offer bank and credit union clients, and aligns with its strategy to add cloud-native and “modular” products and services.
- Terms of the deal weren’t disclosed, and an FIS spokesperson declined to comment. Amount has 158 employees, all of which have joined FIS, the spokesperson said. FIS will maintain the fintech’s Chicago location.
Dive Insight:
“After years of successful partnership, we are thrilled to welcome Amount’s talented team and innovative capabilities to FIS,” said FIS CEO Stephanie Ferris in the news release. “The Amount platform, integrated into FIS digital, core banking and card systems, will help FIS clients grow deposits, loans and card portfolios efficiently and securely.”
Acquiring Amount enhances FIS’s digital account origination capabilities and supports its digital transformation efforts, said Stewart Watterson, a strategic adviser at Datos Insights, who was quoted in the company’s release.
Chicago-based Amount was spun out from online lender Avant in January 2020. Amount raised $81 million later that year in a funding round led by Goldman Sachs, and was valued at $1 billion the following year. In February 2022, Amount acquired Virginia-based Linear Financial Technologies, which operated a small and midsize business loan and account origination platform, for $175 million.
But as the fintech landscape began to shift amid a global drop in funding, Amount cut 18% of its workforce in June 2022, then another 25% less than a year later.
In August 2024, Amount raised $30 million in equity capital. The fintech planned to use the funds to further invest in technology, including enhancing its artificial intelligence and machine learning capabilities, and “accelerate its progress in the credit union sector.”
Amount’s clients include banks and credit unions collectively managing over $3.1 trillion in assets and serving about 50 million U.S. consumers, the fintech has said.
“FIS provides global scale, robust infrastructure and regulatory expertise that will allow us to strengthen our market offering and deliver seamless, innovative customer experiences and accelerate digital transformation,” Amount CEO Adam Hughes said in the release.
Ferris teased “a robust pipeline” of future acquisitions during a second-quarter earnings call in early August, when FIS executives told analysts the company had purchased Canadian firm Everlink Payment Services.
In April, FIS agreed to purchase an issuer business from Global Payments, and said it would sell its minority stake in its merchant business Worldpay to Global Payments.
