Stone Point To Buy Fiserv Businesses
The PE firm will acquire 51 percent of Fiserv’s insurance businesses for $205 million in equity and $335 million in debt.
July 2, 2008
Stone Point Capital, a private equity firm based in Greenwich, Connecticut, has entered into an agreement with Fiserv in which the equity firm will acquire 51 percent of Fiserv’s insurance businesses.
Fiserv is an information technology services provider based in Brookfield, Wisconsin.
According to an announcement on Wednesday, Stone Point will invest about $205 million in equity and $335 million in debt. The company, which will be called Fiserv Insurance Solutions, Inc., will retain the present management team.
Jeffery Yabuki, Fiserv president and chief executive officer, said, “Within Fiserv, we are able to free up capital, maintain an interest in Fiserv Insurance Solutions that should increase in value, and intensify our focus on delivering products and services within the broad financial services and payments landscape.”
Chuck Davis, chief executive officer, of Stone Point Capital, said, “We believe there are a number of exciting growth opportunities for the business, and we look forward to working with the Fiserv Insurance Solutions management team to pursue these growth initiatives as an independent company focused on serving the insurance marketplace.”
The deal is expected to close by the end of this month.
In addition, Fiserv approved the repurchase of 10 million shares of common stock. Fiserv revenue in 2007 was approximately $4 billion. The company’s shares closed at $45.30 on Tuesday.
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