Fiserv Sells Majority Of Insurance Divisions

Jul. 5--CEDAR RAPIDS -- A Wisconsin-based information technology provider to the financial services industry with operations in Cedar Rapids has sold a controlling stake in its insurance division.

Fiserv Inc. of Brookfield, Wis., has signed a definitive agreement with Trident IV, a private equity fund managed by Stone Point Capital LLC, for Trident to invest about $205 million in equity and $335 million in debt to acquire a 51 percent majority interest in Fiserv's insurance businesses. Fiserv Insurance Solutions, as the business will be known, has 150 employees in Cedar Rapids.

Fiserv in southwest Cedar Rapids is the former Network Data Processing, founded in 1956 and acquired by Fiserv in 1997. The Freedom Group in northeast Cedar Rapids was purchased by Fiserv in 1998.

The transaction with Stone Point Capital includes Fiserv's property and casualty, life and financial, workers' compensation, pharmacy and flood services divisions.

Fiserv said it will concentrate on its core banking and payments businesses and retain a 49 percent interest and have board representation in the newly formed Fiserv Insurance Solutions.

Fiserv said the existing management team and employee base will continue with Fiserv Insurance Solutions.

"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," said Jeffery Yabuki, president and chief executive officer of Fiserv. "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, CEO of Stone Point Capital, said the acquisition of Fiserv Insurance Solutions will be a good fit.

"Fiserv Insurance Solutions is a leading player in the insurance technology and outsourcing space," Davis 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.

"We also are pleased that Fiserv will be continuing its involvement through a significant minority ownership position." Stone Point Capital primarily targets investments in the insurance and financial services industries, including insurance underwriting, distribution and services, benefits and health care, asset management and retirement savings and banking and depository institutions.

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