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Motive Partners to buy 60 pct stake in Fiserv’s Investment Services Business

FiservFinTech-focused private equity firm Motive Partners has entered into an agreement with US-based FinTech solutions provider Fiserv, Inc. under which Motive Partners-led investors will acquire up to 60 per cent of the Investment Services business of Fiserv.

Fiserv will receive about $510 million in net after-tax proceeds for the balance 40 percent equity interest in the business, according to a press statement.

Fiserv’s Investment Services business is a technology provider for key segments of the wealth and asset management industry. It’s scalable, integrated platform delivers mission-critical, end-to-end software solutions for the front, middle and back-office. Going forward, the business will benefit from the experience and expertise of Fiserv, Motive Partners and Cannae Holdings in growing scaled financial technology businesses.

The newly formed joint venture will continue to be led by Cheryl Nash, President of Investment Services at Fiserv. Upon the closing of the deal, Rob Heyvaert, Founder and Managing Partner of Motive Partners, will serve as Executive Chairman of the joint venture. William P. Foley II, Executive Chairman of Cannae Holdings, Dun & Bradstreet and Black Knight and Alvi Abuaf, lead Industry Partner for Motive Partners, will also join the board.

“As a leading provider of mission-critical solutions to a growing, blue-chip client base, we look forward to partnering with Fiserv and the Investment Services team in this joint venture,” said Rob Heyvaert. “The Investment Services business has demonstrated its ability to deliver a compelling solution for its wealth and asset management clients and I am confident that our team at Motive Partners will add significant value through innovation, insights and an expanded network…”

The deal is expected 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.

“As the wealth management market continues to grow, so too does our opportunity,” said Cheryl Nash. “To position ourselves best, it is essential to continue to innovate, and Motive Partners’ expertise and focus on value creation will help enable an exciting next chapter for our business and our clients.”

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