BROOKFIELD, Wis. – Fiserv yesterday said it has agreed to sell a 51% majority stake in its insurance businesses to Trident IV, a private equity fund managed by Stone Point Capital LLC, for $540 million.
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, subject to regulatory approval and other customary closing conditions.
Upon closing the transaction, Fiserv no longer will consolidate revenue and expenses from Fiserv Insurance Solutions. Due to the sale of its majority interest, the company will report its 49% share of net earnings in Fiserv Insurance Solutions on a single income statement line item, which is anticipated to begin in Fiserv’s third quarter earnings announcement.
