10-KPeriod: FY2005

FISERV INC Annual Report, Year Ended Dec 31, 2005

Filed March 15, 2006For Securities:FISV

Summary

Fiserv, Inc.'s 2005 Form 10-K highlights a company deeply entrenched in providing integrated information management systems and services to the financial and health benefits industries. The company serves a broad clientele, including banks, credit unions, insurance companies, and self-insured employers, leveraging its extensive acquisition strategy to expand its service offerings and market reach. Fiserv's core business revolves around outsourcing, transaction processing, and software solutions, aiming to enhance the efficiency and competitiveness of its clients in dynamic markets. The company's strategic focus includes continuous product development, cost-effectiveness, aggressive client acquisition, and opportunistic acquisitions, as evidenced by numerous acquisitions throughout 2003, 2004, and 2005, and notably in early 2006 with the acquisition of CareGain. Fiserv operates through three main segments: Financial Institution Outsourcing, Systems and Services; Health Plan Management Services; and Investment Support Services. A significant event in 2005 was the divestiture of its securities clearing businesses, which allows for a more focused approach on its core operations.

Key Highlights

  • 1Fiserv serves over 17,000 clients worldwide across financial services and health benefits industries, demonstrating a broad market presence.
  • 2The company's growth strategy is heavily reliant on acquisitions, with 8 businesses acquired in 2005 and a significant acquisition of CareGain in early 2006, indicating a focus on inorganic growth and expansion of services, particularly in health plan management.
  • 3Fiserv operates three key business segments: Financial Institution Outsourcing, Systems and Services; Health Plan Management Services; and Investment Support Services, providing a diversified revenue base.
  • 4A strategic divestiture of its securities clearing businesses occurred in March 2005, generating $344.9 million in cash and allowing for a more focused operational strategy.
  • 5The company emphasizes product development, with approximately 7% of total revenues dedicated to it in 2005, showcasing a commitment to innovation and staying competitive.
  • 6Fiserv operates primarily domestically, with international operations contributing approximately 4% of total revenues in 2005, indicating a strong North American focus.
  • 7The company acknowledges significant competition within its operating segments and highlights the importance of adapting to technological changes and market demands to maintain its competitive edge.

Frequently Asked Questions

Fiserv operates through three main business segments: Financial Institution Outsourcing, Systems and Services; Health Plan Management Services; and Investment Support Services.

In March 2005, Fiserv completed the sale of its securities clearing businesses for $344.9 million in cash. This divestiture allowed the company to focus on its core operations.

Fiserv pursues growth through a strategy of continuous product development, enhancing service cost-effectiveness, actively seeking new clients, and making opportunistic and strategic acquisitions. The company has a history of acquiring businesses to complement its existing offerings and expand into new markets, such as the acquisition of CareGain in early 2006.

Key risks include those associated with its acquisition strategy (increased debt, unforeseen liabilities, integration challenges), intense competition within its service markets, the potential loss of clients due to contract renewals, the need to adapt to technological changes, industry consolidation, and operational failures or security breaches.