Activist investor ValueAct Capital Management has amassed a position in Fiserv Inc., the parent company of Clover, and argued in an investor presentation that Clover could be worth $185 billion by 2024, Bloomberg reported.
ValueAct is an activist investor that has bought positions in — and then pushed for change at — companies as big as Citigroup and Microsoft.
Bloomberg put ValueAct’s stake in Fiserv at $1.2 billion. Fiserv’s market capitalization as of Friday afternoon (Aug. 20) was almost $77 billion. According to Bloomberg, the investor presentation indicates that Clover already is bigger than Square Inc. — and is growing faster than Square is growing.
“At this point in the cycle, we believe there is more money to be made investing behind incumbents transforming themselves than there is betting on disruptors. Fiserv checks all our boxes as a digital transformation candidate,” the presentation states.
Spokesmen for Bloomberg and Fiserv were unwilling or unreachable for comment.
Fiserv shares were trading at $117.22 just before 2 p.m. on Friday, up from $111.62 a week ago and $97 on Aug. 20. The company is based in Brookfield, Wisconsin and reports having about 44,000 employees.
When Fiserv released second-quarter earnings in July, the figures showed strong growth in eCommerce, even as signs showed that the global recovery from COVID-19 was inconsistent based on geography.
As PYMNTS reported at the time, Chief Executive Frank Bisignano said: “The shift to digital commerce drove consumer demand for seamless experiences across channels.” He noted that North American purchase volume was up 33 percent in the quarter, with retail, gasoline and restaurants leading the pack.
In an already positive earnings reporter for the second quarter, Clover was an especially bright spot. Chief Financial Officer Robert Hau said on an earnings call: “This quarter was also the highest shipment volume for Clover Hardware, having recently shipped our two millionth Clover device.”