8-KEarnings & ResultsAcquisitions & DispositionsRegulation FD+1

FISERV INC 8-K Report, Acquisition Completed (Feb 6, 2008)

Filed February 6, 2008For Securities:FISV

Summary

Fiserv, Inc. (FISV) filed an 8-K on February 6, 2008, reporting the completion of a significant divestiture. On February 4, 2008, the company finalized the sale of Fiserv Trust Company and its institutional retirement plan and advisor services operations, which constituted the majority of the Fiserv Investment Support Services (ISS) business, to TD Ameritrade Online Holdings Corp. for an initial cash payment of $225 million, plus the acquired regulatory capital. Investors should note the potential for additional contingent cash consideration of up to $100 million, tied to future revenue targets over the twelve months post-closing. This transaction marks a strategic move for Fiserv, likely aimed at streamlining operations or focusing on core business areas. The company also indicated its intention to sell the remaining Fiserv ISS business by the end of the second quarter of 2008, signaling a complete exit from this segment.

Key Highlights

  • 1Fiserv, Inc. completed the sale of Fiserv Trust Company and the majority of its Fiserv Investment Support Services (ISS) business to TD Ameritrade on February 4, 2008.
  • 2The initial cash proceeds from the sale to TD Ameritrade amounted to $225 million, plus acquired regulatory capital.
  • 3Fiserv is eligible to receive up to $100 million in contingent cash consideration, dependent on revenue targets achieved over the next twelve months.
  • 4The company plans to divest the remaining Fiserv ISS business by the end of Q2 2008.
  • 5The filing also references Fiserv's press release announcing its financial results for the quarter and year ended December 31, 2007.

Frequently Asked Questions

The primary purpose of this 8-K filing was to report the completion of the sale of Fiserv Trust Company and a significant portion of its institutional retirement plan and advisor services operations (Fiserv ISS) to TD Ameritrade.

Fiserv received $225 million in cash at closing, in addition to the amount of acquired regulatory capital.

Yes, Fiserv is entitled to receive contingent cash consideration of up to $100 million. This payment is based on the achievement of specific revenue targets over the twelve months following the closing of the sale.

Fiserv intends to sell the remainder of the Fiserv ISS business to Robert Beriault Holdings, Inc. by the end of the second quarter of 2008.