Brookfield, Wis. based financial services powerhouse Fiserv entered into an agreement with Warburg Pincus in which the New York-based private equity firm will acquire 55% of Fiserv's Lending Solutions business.
Fiserv, will receive approximately $395 million in net after-tax proceeds and retain a 45% equity interest in the business.
The joint venture will include all of Fiserv's automotive loan origination and servicing products and related operations, as well as its LoanServ mortgage and consumer loan servicing platform. Fiserv will retain its Secure Lending product for e-contracting and 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 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.
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Roy Urrico
Roy W. Urrico specializes in articles about financial technology and services for Credit Union Times, as well as ghostwriting, copywriting, and case studies. Also: writer/editor of a semi-annual newsletter for Association for Financial Technology since 1997 and history projects funded by the U.S Interior Department, National Park Service and Warren County (N.Y.).
