Financial technology provider Fiserv, Inc., announced it has signed a definitive agreement with a private equity firm to hand over 51 percent of Fiserv’s insurance business in exchange for $205 million in equity and $335 million in debt.
The move continues the “Fiserv 2.0” strategy undertaken by CEO Jeff Yabuki of paring down or eliminating business lines outside of the company’s core financial services and payments business. Fiserv maintains the 49 percent share in the business that will be renamed Fiserv Insurance Solutions.
The investment group, Stone Point Capital, has 20 years experience in investment in insurance and financial services, including insurance underwriting, distribution and services, benefits and healthcare, asset management and retirement savings, and banking and depository institutions, according to a news release.
In other news, Fiserv also announced that its board has authorized the repurchase up to 10 million shares of common stock, representing 6 percent of outstanding shares.