Provider of payments and financial services technology Fiserv, Inc. (NASDAQ:FISV) today announced it has signed a definitive agreement to acquire Finxact, Inc., developer of the cloud-native banking solution that is powering digital transformation throughout the financial services sector.

The deal advances the Fiserv digital banking strategy, expanding the company’s account processing, digital, and payments solutions, and positioning Fiserv as the partner of choice for clients looking to scale, accelerate and expand the digital banking experiences they deliver to their customers. Fiserv was an early investor in Finxact and, under the terms of the agreement, Fiserv will acquire the remaining ownership interest for approximately $650 million.

Founded in 2016, Finxact provides clients with a modern, real-time and extensible banking solution that empowers financial institutions with enhanced access to their data. Finxact can help organizations of all sizes launch new products and digital capabilities with maximum flexibility and scalability via a robust set of modern APIs.

As financial institutions and companies across all industries around the world embrace new fast-growing digital technology for embedded commerce, finance and payments, Finxact will enable Fiserv to provide clients modern, flexible and highly personalized digital banking experiences.

“We’re accelerating the delivery of innovative digital banking experiences for our clients and elevating their ability to compete in a rapidly changing market. This transaction complements our Fiserv account processing solutions and expands our opportunities to serve clients by bringing together Finxact’s highly flexible and scalable API-first capabilities with the comprehensive digital financial solutions portfolio and expertise of Fiserv,” said Frank Bisignano, President and Chief Executive Officer of Fiserv.

“Through this combination, Fiserv will create a streamlined path for clients to offer digital solutions to their customers. Finxact also enhances our ability to support a growing number of financial institution and business clients. We look forward to welcoming Frank Sanchez and the talented Finxact team to Fiserv as we continue to grow our client banking portfolio.”

“Joining with Fiserv is a tremendous opportunity for Finxact,” said Frank Sanchez, Chairman and CEO of Finxact. “We recognize that Finxact’s technology can serve to level up the industry’s delivery infrastructure, and crucially at a time when banking is undergoing transformative changes. We will be better positioned to serve a far greater number of institutions, of all sizes, when combined with the breadth and depth of Fiserv capabilities.”

The transaction is subject to customary approvals and closing conditions and is expected to close later this year.