Motive Partners-led investors, including Cannae
Holdings, will leverage their combined capabilities and resources
to drive substantial value for clients, associates and
shareholders
Motive Partners, a private equity firm focused on
technology-enabled companies that power the financial services
industry, and Fiserv, Inc. (NASDAQ:FISV), a leading global provider
of payments and financial services technology solutions, have
entered into a definitive agreement under which Motive Partners-led
investors will acquire up to 60% of the Investment Services
business of Fiserv. Retaining a 40% equity interest in the
business, Fiserv will receive approximately $510 million in net
after-tax proceeds.
The Investment Services business is a leading technology
provider for key segments of the wealth and asset management
industry. Its scalable, integrated platform delivers
mission-critical, end-to-end software solutions for the front,
middle and back office.
As a provider of a premier platform for the industry, the
Investment Services business serves a blue-chip customer base in a
market with favorable macro trends and the potential to accelerate
growth as a standalone business. Going forward, the business will
benefit from the experience and expertise of Fiserv, Motive
Partners and Cannae Holdings in growing scaled financial technology
businesses and will remain committed to delivering market-leading
wealth management capabilities through innovative, adviser-centric
technology solutions.
The newly formed joint venture will continue to be led by Cheryl
Nash, President of Investment Services at Fiserv. Upon the closing
of the transaction, Rob Heyvaert, Founder and Managing Partner of
Motive Partners, will serve as Executive Chairman of the joint
venture. William P. Foley II, Executive Chairman of Cannae
Holdings, Dun & Bradstreet and Black Knight and Alvi Abuaf,
lead Industry Partner for Motive Partners, will also join the
Board.
“We are delighted to be joining forces with Rob and Motive
Partners to enhance and accelerate Investment Services’ leadership
position,” said Jeffery Yabuki, Chairman and Chief Executive
Officer of Fiserv. “The new joint venture will increase our
collective focus on growth and value, while creating more
opportunities for clients, associates and shareholders.”
Founded in 1979 as Security APL, the original Investment
Services business platform has undergone significant investment and
innovation to become an industry leader, including the development
of innovative services and the acquisition of additional
capabilities.
Today, the business is a market-leading technology provider to 7
of the top 10 U.S. broker-dealers, and 9 of the top 12 U.S. retail
asset managers. Further, the estimated addressable market for the
business is significant, with a U.S. wealth management sector of
over $20 trillion of assets under management and an estimated 20
million managed accounts.
“As a leading provider of mission-critical solutions to a
growing, blue-chip client base, we look forward to partnering with
Fiserv and the Investment Services team in this joint venture,”
said Rob Heyvaert. “The Investment Services business has
demonstrated its ability to deliver a compelling solution for its
wealth and asset management clients and I am confident that our
team at Motive Partners will add significant value through
innovation, insights and an expanded network. We are excited to
work with the leadership team and key clients to create new
solutions for this growing market segment.”
William P. Foley II, Chairman of Cannae Holdings, commented,
“Fiserv Investment Services has delivered strong growth and
powerful solutions for its clients for over 35 years. It is our
belief that with positive industry tailwinds and the opportunity
presented by wealth-technology innovation, we can continue to
deliver superior solutions for our partners around the world. We
look forward to delivering on our client-centric strategy and
growth ambitions.”
Motive Partners’ innovation arm, Motive Labs, works with an
international network of globally renowned financial institutions,
portfolio companies and strategic partners to deliver
market-leading innovation services and solutions. As the Investment
Services business of Fiserv positions itself as a standalone wealth
technology leader, it will partner with Motive’s Industry Partners
and technologists to capitalize on the client-centric value
creation strategy Motive has developed.
“As the wealth management market continues to grow, so too does
our opportunity,” said Cheryl Nash. “To position ourselves best, it
is essential to continue to innovate, and Motive Partners’
expertise and focus on value creation will help enable an exciting
next chapter for our business and our clients.”
The transaction, which is subject to customary approvals and
closing conditions, is targeted to close in the first quarter of
2020 and is expected to be slightly dilutive to the adjusted
earnings per share of Fiserv in 2020.
Forward Looking Statements
This news release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including statements regarding the expected timing and benefits of
the transaction. Statements can generally be identified as
forward-looking because they include words such as “believes,”
“anticipates,” “expects,” “could,” “should,” or words of similar
meaning. 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 timeline; the benefits of the transaction may be
different than currently anticipated; and other factors included in
“Risk Factors” in Fiserv’s quarterly report on Form 10-Q for the
quarter ended September 30, 2019, and in other documents that
Fiserv files with the SEC, which are available at www.sec.gov. 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 news release.
About Motive Partners
Motive Partners is a sector specialist investment firm that is
focused on technology enabled companies that power the financial
services industry. Based in New York and London and comprised of
investors, operators and innovators, Motive Partners brings
differentiated expertise, connectivity and capabilities to create
long-term value in financial technology companies.
More information on Motive Partners can be found at
www.motivepartners.com.
About Cannae Holdings, Inc.
Cannae holds majority and minority equity investment stakes in a
number of entities, including Dun & Bradstreet, Ceridian HCM
Holding Inc., American Blue Ribbon Holdings, LLC and T-System
Holding LLC.
About Fiserv
Fiserv, Inc. (NASDAQ:FISV) aspires to move money and information
in a way that moves the world. As a global leader in payments and
financial technology, the company helps clients achieve
best-in-class results through a commitment to innovation and
excellence in areas including account processing and digital
banking solutions; card issuer processing and network services;
payments; e-commerce; merchant acquiring and processing; and the
Clover® cloud-based point-of-sale solution. Fiserv is a member of
the S&P 500® Index and the FORTUNE® 500, and is among the
FORTUNE Magazine World's Most Admired Companies®. Visit fiserv.com
and follow on social media for more information and the latest
company news.
FISV-G
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version on businesswire.com: https://www.businesswire.com/news/home/20191205005477/en/
Media Relations: Sam Tidswell-Norrish Communications
Motive Partners +44(0) 7855 910178 sam@motivepartners.com Britt
Zarling Vice President, Corporate Communications Fiserv, Inc. +1
414-378-4040 britt.zarling@fiserv.com Investor Relations:
Peter Poillon Investor Relations Fiserv, Inc. +1 212-266-3565
peter.poillon@fiserv.com
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