A private equity firm will acquire a 55% share of the business
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Financial services technology company Fiserv has announced that it will sell the majority of its loan origination and servicing business to private equity firm Warburg Pincus.
According to Fiserv, funds affiliated with Warburg Pincus will acquire a 55% share in Fiserv’s lending solutions business for a price of about $395 million. Fiserv will retain a 45% 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 said in a statement.
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The business will continue to be led by Bret Leech, currently president of Fiserv Lending Solutions.
“Fiserv is committed to delivering value for clients, and we expect this partnership with Warburg Pincus to further enhance service and innovation across the lending marketplace,” said Fiserv CEO Jeffery Yabuki. “In addition, we will continue to provide integration advantages to ensure that our collective clients get the best of both organizations to provide differentiated value for our clients, associates and shareholders.”
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