Established in 1998, CheckAGAIN uses automated clearinghouse (ACH) transactions to electronically re-present returned checks, primarily for major retailers. The company has developed a proprietary system for electronically recovering checks that were returned because of insufficient funds. With CheckAGAIN’s services, businesses are able to increase their recovery on return checks, while lowering associated transaction fees. CheckAGAIN assists consumers by significantly reducing inconveniences normally associated with resolving misunderstandings due to returned checks. CheckAGAIN retained Outcome Capital Securities, LLC to sell the Company because of the firm’s ability to run a highly efficient transaction process and target the appropriate strategic and financial buyers. The owner wanted to pursue a sale of the Company to provide development capital to his start-up business in the biometric identification area.
CheckAGAIN was acquired by Fiserv, Inc. (NASDAQ:FISV), the nation’s largest third-party processor of checks. With the added capabilities from CheckAGAIN, Fiserv will be able to expand its services into a fast-growing, complementary market and cross-sell a valuable service to its financial institution clients. The acquisition will contribute approximately $15 million in annualized revenues to Fiserv.
“We are at the crossroads of a major change in the way that checks are processed,” said Leslie M. Muma, Fiserv president and chief executive officer. “After decades of moving paper all across this country, we are driving very quickly toward converting the paper to electronic transactions. The addition of CheckAGAIN will enable Fiserv to continue to enhance our leadership in the conversion of checks to electronic transactions.”
Mark Damico, president of the Fiserv Item Processing Group, said Fiserv sees great potential with the addition of CheckAGAIN. “The vast majority of returned checks are still processed using paper,” Damico said. “However, as checks continue to decline in volume and as more checks move toward electronic processing, we can provide our clients a very valuable service by offering electronic processing of returned checks through CheckAGAIN.”
Outcome Capital acted as the exclusive investment banker and financial advisor to CheckAGAIN in connection with the transaction.