A group of investors led by Motive Partners have agreed to acquire a stake of up to 60% in Fiserv’s Investment Services business for a post-tax amount of about $510m.
Fiserv will retain the remaining 40% stake in the business which provides technology for certain segments of the wealth and asset management industry.
The integrated platform of the Investment Services business is said to provide the front, middle and back office with mission-critical, end-to-end software solutions.
Motive Partners along with other investors in the buying group that also includes Cannae are expected to make use of their combined capabilities and resources to help deliver significant value for clients, associates and shareholders.
According to Fiserv, the Investment Services business caters to a blue-chip customer base and has the potential to accelerate its growth to become an independent business.
The Investment Services business was founded in 1979 as Security APL
The business was founded as Security APL in 1979 and since then is said to have gone on to become one of the major technology providers to seven of the top 10 US broker-dealers, and nine of the top 12 retail asset managers in the US.
Fiserv Investment Services president Cheryl Nash said: “As the wealth management market continues to grow, so too does our opportunity.
“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.”
Motive Partners said that the Investment Services business has a significant estimated addressable market with a US wealth management sector of more than $20trillion of assets under management, while managing an estimated 20 million accounts.
The deal, which is subject to customary approvals and closing conditions, is expected to be completed in the first quarter of 2020.
Upon its completion, Motive Partners’ founder and managing partner Rob Heyvaert will be the executive chairman of the subsequently formed joint venture.
Heyvaert said: “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.”
Earlier this year, Fiserv signed an all-stock deal worth $22bn to acquire rival US financial services company First Data with an objective to create a new payment and financial technology provider.
