Fiserv to sell majority interest in Lendings Solutions unit to Warburg Pincus
Fiserv, announced it has entered into a definitive agreement with Warburg Pincus pursuant to which funds affiliated with Warburg Pincus will acquire a 55% share of the Lending Solutions business of Fiserv. Fiserv will receive approximately $395M in net after-tax proceeds and retain a 45% equity interest in the business. 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. The transaction, which is subject to customary closing conditions, is targeted to close in 1Q18.