New York-based Motive Partners has entered into a joint venture with Fiserv whereby the company will acquire the majority of Fiserv’s investment services business.
Under the definitive agreement, Motive Partners-led investors will acquire up to 60% of Fiserv’s investment services business while Fiserv will retain 40% equity interest in the business, receiving approximately $510 million in net after tax proceeds, according to a press release.
Fiserv’s investment service business is a technology provider for key segments of the wealth and asset management industry. The scalable, integrated platform delivers end-to-end software solutions for the front, middle and back office.
The transaction, which is still subject to approvals and closing conditions, is targeted to close in the first quarter of 2020 and is expected to be “slightly dilutive to the adjusted earnings per share of Fiserv in 2020,” according to a press release.
Motive Partners is a private equity firm focused on technology-enabled companies that power the financial services industry. Cannae Holdings, a Las Vegas, Nevada financial technology business, will work with Motive Partners-led investors on the acquisition.
Cheryl Nash, president of investment services at Fiserv, will lead the newly formed joint venture. When the transaction closes, Rob Heyvaert, founder and managing partner at Motive Partners, will serve as executive chairman of the joint venture.
“We are delighted to be joining forces with Rob and Motive Partners to enhance and accelerate investment services’ leadership position,” said Jeffery Yabuki, Fiserv chairman and chief executive officer. “The new joint venture will increase our collective focus on growth and value, while creating more opportunities for clients, associates and shareholders.”