Fiserv, which develops a suite of technologies for the financial services, has received a $395m investment from Warburg Pincus.
The transaction will see Warburg acquire a 55 per cent stake in the company’s Lending Solutions business, while Fiserv will retain a 45 per cent share. This new partnership will see the companies work together in the automotive loan origination and servicing products, and the LoanServ mortgage and consumer loan servicing platform.
Fiserv will retain control over its secure lending product for e-contracting and the UniFi mortgage origination solution. Following the deal, the Lending Solutions business will continue to be led by Bret Leech, who is the current president.
Wisconsin-based Fiserv provides companies with a selection of financial solutions, including payment processing, risk and compliance, lending, data and analytics, billing and remittances, among others.
The lending solutions business is compiled of an automotive lending origination technology platform, automotive lending servicing technology and process solutions. Alongside this, the company offers a comprehensive mortgage and consumer loan servicing solutions.
Fiserv president and CEO Jeffery Yabuki said, “Fiserv is committed to delivering value for clients, and we expect this partnership with Warburg Pincus to further enhance service and innovation across the lending marketplace. In addition, we will continue to provide integration advantages to ensure that our collective clients get the best of both organizations to provide differentiated value for our clients, associates and shareholders.”
The company has recently made a string of partnerships with companies across the FinTech industry. Last month, Fiserv partnered with both personal finance platform Motor City Community Credit Union and cross-border remittance solution provider LuLu Exchange.
Late last year, the company also formed a partnership with Dime Community Bank, which was formed to support account processing and security solutions for the bank’s staff.
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