US Fintech vendor Fiserv is to acquire i_Tech Corporation, a provider of outsourced account and payment processing services, from First Interstate BancSystem for $40 million.
I_Tech provides outsourced account processing services as a licensee and reseller of the Fiserv ITI Premier core banking system to 158 financial institutions located primarily in the northern Midwest and West.
The company also provide service for more than 750 ATMs in 10 states, as well as EFT processing and cheque processing.
First Interstate BancSystem president and CEO Lyle Knight says the decision to sell i_Tech was a strategic one based on long-term trends for bank data processing.
"This was a difficult decision for us as i_Tech has been a member of the First Interstate family for many years. But the industry has changed," he notes. "Many banks are divesting themselves of their data processing operations. While we were successful in the past, we felt that, going forward, global provider Fiserv was in the best position to take our clients to the next level."