Private equity firm Warburg Pincus is buying a 55% share of Fiserv’s mortgage lending solutions business for approximately $395 million.
Fiserv will retain a 45% equity interest in the business.
The joint venture, which is still subject to approvals, will include all of the automotive loan origination and servicing products and related operations of Fiserv, as well as its LoanServ mortgage and consumer loan servicing platform, according to a press release.
Fiserv will retain its Secure Lending product for e-contracting and its UniFi mortgage origination solution.
The new venture is expected to create value for current and future Fiserv clients.
“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,” says Jeffery Yabuki, president and CEO for Fiserv. “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 deal is expected to close in the first quarter.
