Global financial services and payments provider Fiserv, Inc. (FISV) has inked a deal to buy BentoBox, a digital marketing and commerce platform focussed on restaurant services, for an undisclosed amount. The deal is expected to close in the fourth quarter of 2021, subject to closing conditions. Shares closed at $110.01 on October 18.
Fiserv provides technology solutions in areas such as account processing and digital banking solutions, card issuer services, payments, e-commerce, merchant acquiring and processing, as well as its cloud-based point of sale solution, Clover. With a market cap of $72.71 billion, shares have gained 11.4% over the past year. (See Insiders’ Hot Stocks on TipRanks)
BentoBox was founded in 2013 to enhance diner engagement and growth for restaurants with a best-in-class platform for website designing, online ordering, and marketing. BentoBox serves more than 7,500 restaurants across 14,000 locations and helps restaurants grow their revenue streams by attracting customers through various diner experiences.
Adding BentoBox to Fiserv’s Clover dining solutions will enable its nearly 200,000 restaurants to deliver smooth and differentiated hospitality experiences for both physical and in-house dining.
Commenting on the deal, Frank Bisignano, President, and CEO of Fiserv, said, “The addition of BentoBox’s premier website capabilities to the business management solutions of Fiserv will strengthen our omnichannel platform, providing restaurants of all sizes and types with an integrated offering that delivers a customizable consumer experience.”
Bisignano added, “We look forward to welcoming the BentoBox team to Fiserv, as we build on our strategy to deliver blended digital and in-person customer experiences across channels that drive deeper engagement and increased loyalty for our clients.”
Recently, Robert W. Baird analyst David Koning maintained a Buy rating on the stock with a price target of $152, implying 38.2% upside potential to current levels.
Koning expects Fiserv to grow organically in the mid/high single digits with margin expansion and accretive uses of cash flow. Koning noted that the firm’s revenue base is about 85% – 90% recurring, driven by long-term outsourcing contracts, with no single client representing a huge chunk of revenue.
Additionally, the analyst believes that the company has potential for cross-selling initiatives, which could add to revenue growth of 1% – 2% in the long term, while cost-cutting initiatives could drive profitability.
Overall, the stock commands a Strong Buy consensus rating based on 9 Buys and 1 Hold. The average Fiserv price target of $143.78 implies 30.7% upside potential to current levels.
Furthermore, TipRanks data shows that financial blogger opinions are 100% Bullish on FISV, compared to a sector average of 71%.