Fiserv, a provider of information technology services to the financial and insurance industries, has signed a definitive agreement with Trident IV, a private equity fund managed by Stone Point Capital, 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.
Fiserv expects to receive approximately $510 million in net after-tax proceeds and to retain a 49% equity interest in Fiserv Insurance Solutions. The transaction is anticipated to close in July 2008, subject to regulatory approval and other customary closing conditions.
According to the company, the transaction will include nearly all aspects 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.
Jeffery Yabuki, president and CEO of Fiserv, said: 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.