Fiserv’s partial Lending Solutions sale nets $419 million

Company remains mum on headquarters plans

The Fiserv headquarters in Brookfield.
The Fiserv headquarters in Brookfield.

Brookfield-based Fiserv Inc. on Tuesday reported its first quarter financial results, but continued to remain silent on its search for a new headquarters.

The Fiserv headquarters in Brookfield.

Fiserv in August 2017 confirmed it had narrowed its headquarters search to three potential spots in the Milwaukee area, but has not provided any further information on the process.

Contacted last week about the headquarters search, Fiserv spokeswoman Ann Cave said: “I don’t have any updates on the headquarters location beyond what we’ve shared previously.”

Fiserv today reported it earned a total of $419 million on its sale of a 55 percent interest in its Lending Solutions business to New York private equity firm Warburg Pincus LLC. The company previously expected the sale to net $395 million. Fiserv retained a 45 percent equity interest in Lending Solutions, which develops technology platforms for auto loan origination, servicing and processing; and mortgage and consumer loan servicing.

Fiserv also in January sold its retail voucher business, which was part of the Monitise acquisition it completed for $98 million in 2017, for $50 million, the company said.

Fiserv’s first-quarter net income totaled $423 million, or $1 per diluted share, up from $247 million, or 56 cents per share, in the first quarter of 2017.

Revenue was $1.4 billion in the first quarter, flat from the year-ago quarter.

Operating income totaled $608 million in the first quarter, up from $365 million in the first quarter of 2017.

“Our first quarter performance is consistent with our expectations for the full year,” said Jeffery Yabuki, president and chief executive officer of Fiserv. “Results in the quarter were punctuated by a 23 percent increase in adjusted earnings per share and double-digit sales growth.”

Fiserv, a Fortune 500 company, has about 24,000 employees at 120 offices globally. The company develops payment, processing, risk and compliance, customer and channel management, and insights and optimization technology products for banks and credit unions.

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Molly Dill, former BizTimes Milwaukee managing editor.

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