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PNC Financial (PNC) Acquires Linga, Boosts Payment Technology

Zacks Equity Research
·3 min read

The PNC Financial Services Group, Inc. PNC closed the buyout of Linga, a point of sale (POS) and payment solutions firm. The latter provides a pre-eminent cloud-based restaurant operating system. Thus, it will expand PNC Financial’s ability to cater to the hospitality and restaurant industry clients.

The financial terms of the deal were kept under wraps.

Linga was founded in 2004 and has developed its proprietary restaurant operating system Linga rOS®. This was the first all-in-one, cloud-based operating system introduced to the marketplace. The same currently serves clients in 48 countries.

Linga’s operating system has additional features, including online ordering, payments, QR code-based menus and virtual kiosks. The acquisition will enable PNC Financial to leverage the operating system, as it will be integrated into the bank's digital solutions ecosystem and expand its digital resources.

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Per management, "This acquisition reflects our continued commitment to expanding our corporate payments capabilities, as well as investing in the solutions and tools our clients need to run their businesses more effectively."

Management also noted, "Leveraging Linga's proprietary solutions and PNC's competitive treasury management platform, we will be able to provide our restaurant and retail clients with the tools they need to keep up with ever-changing consumer expectations."

PNC Financial remains committed to strengthening its business through strategic initiatives. In October 2021, the company completed the conversion of BBVA USA customers and employees to PNC Financial's network and platforms. The acquisition, completed in June 2021, boosted its foothold as a commercial bank in all top 30 markets of the United States.

In a bid to strengthen its distribution and capabilities, in 2021, the company expanded its presence in Las Vegas and added 11 solution centers in strategic markets. It plans to extend the reach of its middle-market corporate banking franchise into new markets and expand its retail banking brand nationally. Thus, its bottom line is likely to get further support if it continues to make planned investments and diversify its business mix.

With the pandemic accelerating the demand for contactless experiences such as online ordering and QR codes, PNC Financial’s acquisition of Linga will likely prove fruitful.

Shares of this Zacks Rank #2 (Buy) company have declined 23.7%, narrower than the industry’s fall of 24.8% over the past six months. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

 

Like PNC Financial, other banks have been undertaking payment-related fintech acquisitions to bridge technology gaps.

To further modernize and bolster its payments processing platform, JPMorgan JPM announced a deal to acquire Renovite Technologies, Inc. The financial terms of the deal have not been disclosed yet.

The transaction will hugely complement JPM’s planned strategic investment in Greece-based Viva Wallet (still subject to regulatory approvals) and the partnership with Volkswagen Financial Services AG.

This aside,Citizens Financial CFG is on a buyout spree. This July, the company announced plans to acquire Paladin Advisors, an independent, registered investment advisor, to strengthen its private wealth management business.

Earlier, CFG closed the acquisitions of DH Capital LLC and Investors Bancorp. In February, it closed the buyout of 80 East Coast branches and the national online deposit business from HSBC Bank U.S.A, N.A. These and other buyouts enable the company to expand its product capabilities and geographic reach.


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