IBM Corporation IBM on Tuesday announced it has acquired Expertus Technologies Inc, a Canadian fintech startup offering payments and cash management solutions.
What Happened: The Canadian cloud-based banking solutions provider handles an average of $50 billion in daily transactions routed by more than 1,000 financial entities, according to IBM. The startup will now operate under the umbrella of IBM Global Business Services Unit.
The specifics of the terms of acquisition and the payment consideration for the deal haven't been disclosed.
"Expertus' payment-as-a-service solution expands our hybrid cloud-based payments offerings, transforming payments and treasury management with AI to give financial institutions the flexibility to rapidly innovate and stay competitive as consumer demands evolve," IBM Services Senior Vice President Mark Foster said in a statement.
Why Does It Matter: The Expertus acquisition will strategically position IBM to tackle challenges faced by its banking clients. With the support of Expertus, IBM noted it could introduce solutions that not only adhere to regulatory guidelines but also offer cost benefits to the company and its clients.
IBM noted that, on a global scale, banks are pumping close to $100 billion for technologically enhancing the payments systems.
The revamp could help IBM clients catch up with payment solutions providers like PayPal Holdings Inc PYPL and Square Inc SQ, Bloomberg noted earlier.
Price Action: IBM gained 1.94% on Tuesday to close at $125.93.
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