Newly formed joint venture will leverage the capabilities of
world-class organizations to create compelling value proposition for
BROOKFIELD, Wis. & NEW YORK--(BUSINESS WIRE)--
Inc. (NASDAQ: FISV), a leading global provider of financial services
technology solutions, today announced it has entered into a definitive
agreement with Warburg Pincus LLC, a leading global private equity firm
focused on growth investing, pursuant to which funds affiliated with
Warburg Pincus will acquire a 55 percent share of the Lending Solutions
business of Fiserv. Fiserv will receive approximately $395 million in
net after-tax proceeds and retain a 45 percent equity interest in the
The joint venture will include all of the automotive loan origination
and servicing products and related operations of Fiserv, as well as its
LoanServ™ mortgage and consumer loan servicing platform. Fiserv will
retain its Secure Lending™ product for e-contracting and its UniFi®
mortgage origination solution. The new venture is also expected to
create value for current and future Fiserv clients by partnering closely
with Fiserv for seamless delivery of account processing, integrated
billing and payments and LoanComplete™ solutions, and through Warburg
Pincus' demonstrated expertise and track record in growing financial
technology businesses of scale. The business will continue to be led by
Bret Leech, currently President of Fiserv Lending Solutions, and focus
on delivering a market-leading lending experience through innovative,
borrower-centric technology and processing solutions.
"Fiserv is committed to delivering value for clients, and we expect this
partnership with Warburg Pincus to further enhance service and
innovation across the lending marketplace," said Jeffery Yabuki,
President and Chief Executive Officer, Fiserv. "In addition, we will
continue to provide integration advantages to ensure that our collective
clients get the best of both organizations to provide differentiated
value for our clients, associates and shareholders."
The Fiserv Lending Solutions business is a market leader in automotive
lending origination technology, automotive lending servicing technology
and process solutions, as well as comprehensive mortgage and consumer
loan servicing solutions.
"We are pleased to partner with Fiserv and the Lending Solutions
leadership team on this new joint venture, which brings together two
leading businesses that provide mission-critical solutions to a growing
and attractive client base," said Jim Neary, Managing Director, Warburg
Pincus. "We see meaningful opportunity to further build this business
into a leading platform in automotive and mortgage lending technology."
Warburg Pincus brings more than four decades of growth focused investing
in financial services and deep experience in advancing technology
products and platforms that serve a diverse range of consumer lending
needs across multiple business channels.
Bret Leech added, "We look forward to collaborating with Warburg Pincus
to build on our combined vision of lending technology excellence to
better serve the evolving needs of our clients and their customers."
The transaction, which is subject to customary closing conditions, is
targeted to close in the first quarter of 2018.
Forward Looking Statements
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including statements regarding the expected timing of the transaction.
Forward-looking statements are subject to assumptions, risks and
uncertainties that may cause actual results to differ materially from
those contemplated by such forward-looking statements. The factors that
may adversely impact the anticipated outcomes include, among others: the
occurrence of any event, change or other circumstance that could give
rise to the termination of the transaction agreement; conditions to the
completion of the transaction may not be satisfied on the terms expected
or on the anticipated schedule; the benefits of the transaction may be
different than currently anticipated; and other factors identified in
Fiserv filings with the SEC from time to time, including those in its
annual report on Form 10-K. You should consider these factors carefully
in evaluating forward-looking statements, and are cautioned not to place
undue reliance on such statements. Fiserv assumes no obligation to
update any forward-looking statements, which speak only as of the date
of this press release.
Fiserv, Inc. (NASDAQ: FISV) enables clients worldwide to create and
deliver financial services experiences in step with the way people live
and work today. For more than 30 years, Fiserv has been a trusted leader
in financial services technology, helping clients achieve best-in-class
results by driving quality and innovation in payments, processing
services, risk and compliance, customer and channel management, and
insights and optimization. Fiserv is a member of the FORTUNE®
500 and has been named among the FORTUNE Magazine World's Most Admired
Companies® for five consecutive years, recognized for
strength of business model and innovation leadership. For more
information, visit fiserv.com.
About Warburg Pincus LLC
Warburg Pincus LLC is a leading global private equity firm focused on
growth investing. The firm has more than $44 billion in private equity
assets under management. The firm's active portfolio of more than 150
companies is highly diversified by stage, sector, and geography. Warburg
Pincus is an experienced partner to management teams seeking to build
durable companies with sustainable value. Founded in 1966, Warburg
Pincus has raised 17 private equity funds which have invested more than
$60 billion in over 800 companies in more than 40 countries. The firm is
headquartered in New York with offices in Amsterdam, Beijing, Hong Kong,
Houston, London, Luxembourg, Mumbai, Mauritius, San Francisco, São
Paulo, Shanghai, and Singapore. For more information, please visit www.warburgpincus.com.
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Source: Fiserv, Inc.
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