Brookfield, Wis. — Fiserv Inc., a Brookfield, Wis.-based provider of IT services to the financial and insurance industries worldwide, has signed a definitive agreement with Trident IV, a private equity fund managed by Greenwich, Conn.-based Stone Point Capital LLC, in which Trident will invest approximately $205 million in equity and $335 million in debt to acquire a 51% majority interest in Fiserv’s insurance businesses. According to Fiserv, the transaction includes Fiserv’s Property & Casualty, Life and Financial, Workers’ Comp Pharmacy and Flood Services divisions. Fiserv Inc. will concentrate on its core banking and payments businesses, retain 49% interest and have board representation in the newly formed Fiserv Insurance Solutions. Fiserv expects to receive approximately $515 million in net after-tax proceeds. The transaction is anticipated to close in July 2008, subject to regulatory approval and other customary closing conditions. The transaction will impact nearly all of Fiserv’s insurance segment. The current management team and employee base will continue with the company, which will be known as Fiserv Insurance Solutions Inc.
“Stone Point Capital brings a proven track record of insurance industry success that we believe will accelerate the growth opportunities for Fiserv Insurance Solutions and its clients,” says Jeffery Yabuki, president and CEO of Fiserv. “Within Fiserv, we are able to free up capital, maintain an interest in Fiserv Insurance Solutions that should increase in value, and intensify our focus on delivering products and services within the broad financial services and payments landscape.”
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