8-KOther EventsExhibits & Filings

FISERV INC 8-K Report, Corporate Update (May 3, 2021)

Filed May 3, 2021For Securities:FISV

Summary

Fiserv, Inc. (FISV) announced on May 3, 2021, the completion of a secondary public offering by New Omaha Holdings L.P., an investment fund managed by Kohlberg Kravis Roberts & Co. L.P. New Omaha sold 23 million shares of Fiserv's common stock. Importantly, Fiserv itself did not sell any shares in this offering and, therefore, received no proceeds from the transaction. This offering represents a reduction in the stake held by KKR's investment funds in Fiserv. In conjunction with the offering, Fiserv repurchased 5 million shares of its own common stock from the underwriters at the offering price, funded by existing cash. These repurchased shares will be cancelled and are no longer outstanding. This action, while not a direct capital raise for Fiserv, reduces the total number of outstanding shares, potentially impacting per-share metrics. The filing details the reduction in New Omaha's ownership from approximately 12.8% to 9.3% of Fiserv's outstanding shares.

Key Highlights

  • 1Secondary public offering completed by New Omaha Holdings L.P. (KKR fund).
  • 223 million shares of Fiserv common stock were sold by New Omaha.
  • 3Fiserv did not sell any shares and received no proceeds from the offering.
  • 4Fiserv repurchased 5 million of its own shares from the underwriters using cash on hand.
  • 5The repurchased shares will be cancelled and removed from outstanding shares.
  • 6New Omaha's ownership stake in Fiserv decreased from approximately 12.8% to 9.3%.

Frequently Asked Questions

No, Fiserv did not sell any shares in this offering and therefore received no proceeds. The offering was a secondary offering where an existing shareholder, New Omaha Holdings L.P., sold their shares.

Fiserv repurchased 5 million shares of its own stock from the underwriters, funded by cash. These shares will be cancelled, reducing the total number of outstanding shares. This could positively impact earnings per share (EPS) and other per-share metrics, assuming earnings remain constant.

While the filing doesn't state the specific reason, it's common for private equity firms like KKR, after a period of investment, to reduce their holdings in a public company through secondary offerings or other means to realize returns on their investment.

The reduction in ownership from 12.8% to 9.3% indicates a decreased stake by the KKR-affiliated fund in Fiserv. This may signal a partial exit from their investment, though they still retain a significant holding.