Fiserv, Inc., a provider of information technology services to the insurance industry, has signed a definitive agreement with Trident IV, a private equity fund managed by Stone Point Capital LLC, in which Trident will invest approximately $205 million in equity and $335 million in debt to acquire a 51 percent majority interest in Fiserv's insurance businesses.

Fiserv expects to receive approximately $515 million in net after-tax proceeds and to retain a 49 percent equity interest in Fiserv Insurance Solutions. The transaction is anticipated to close in July 2008, subject to regulatory approval and other customary closing conditions. The transaction will impact nearly all of Fiserv's insurance segment. The current management team and employee base will continue with the company, which will be known as Fiserv Insurance Solutions, Inc.

"Stone Point Capital brings a proven track record of insurance industry success we believe will accelerate the growth opportunities for Fiserv Insurance Solutions and its clients," says Jeffrey Yabuki, president and CEO 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."

"We are delighted to partner with Fiserv and the management team of Fiserv Insurance Solutions," says Chuck Davis, CEO of Stone Point Capital. "Fiserv Insurance Solutions is a leading player in the insurance technology and outsourcing space. 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 are also pleased Fiserv will be continuing its involvement, through a significant minority ownership position, which we believe will further enhance the company's prospects for success."

Stone Point Capital and its predecessor operations have a 20-year history of successful investing in the global insurance and financial services industries. Stone Point Capital primarily targets investments in the insurance and financial services industries, including insurance underwriting, distribution and services, benefits and healthcare, asset management and retirement savings, and banking and depository institutions.

"Stone Point Capital's business philosophy and culture match our own," says Mark Damico, president and CEO of Fiserv Insurance Solutions. "The entire Fiserv Insurance Solutions management team is excited to go to market with a partner with deep insurance sector expertise. Stone Point Capital recognizes our commitment to employees as well as clients, and through our partnership, we will continue to provide innovative solutions for years to come."

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Fiserv to Sell Off Majority Interest in Its Insurance Business

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