Fiserv agrees to sell majority interest in insurance business

Fiserv agrees to sell majority interest in insurance business
Tags: North America, Regulatory Issues
July 7, 2008

BROOKFIELD, Wis. — Fiserv Inc. has signed a deal with Trident IV, a private-equity fund managed by Stone Point Capital LLC, for Trident to acquire a 51-percent majority interest in Fiserv's insurance business. The deal is expected to close by the end of July.

According to a news release, Trident expects to invest approximately $205 million in equity and $335 million in debt in the business.

Fiserv anticipates getting approximately $515 million in net, after-tax proceeds.

Fiserv will retain a 49-percent equity interest in the business.

The current management team and employee base will remain with the company, Fiserv says, which will continue to operate as Fiserv Insurance Solutions Inc.