Motive Partners, a private equity firm focused on technology-enabled companies that power the financial services industry, has reached a deal under which its investors will acquire up to 60% of the Investment Services business of Fiserv for approximately $510 million in net after-tax proceeds.
The Investment Services business is a leading technology provider for key segments of the wealth and asset management industry. Its scalable, integrated platform delivers mission-critical, end-to-end software solutions for the front, middle and back-office. This particular business serves a blue-chip customer base in a market with favorable macro trends and the potential to accelerate growth as a standalone business. The department will remain committed to delivering market-leading wealth management capabilities through innovative, adviser-centric technology solutions, according to the
announcement.
Cheryl Nash, President of Investment Services at Fiserv, will remain at the helm of the business and Rob Heyvaert, Founder and Managing Partner of Motive Partners, will serve as Executive Chairman of the joint venture. “As the wealth management market continues to grow, so too does our opportunity. To position ourselves best, it is essential to continue to innovate, and Motive Partners’ expertise and focus on value creation will help enable an exciting next chapter for our business and our clients”, said Cheryl Nash.
Rob Heyvaert, Founder and Managing Partner of Motive Partners, said: “As a leading provider of mission-critical solutions to a growing, blue-chip client base, we look forward to partnering with Fiserv and the Investment Services team in this joint venture. The Investment Services business has demonstrated its ability to deliver a compelling solution for its wealth and asset management clients and I am confident that our team at Motive Partners will add significant value through innovation, insights and an expanded network. We are excited to work with the leadership team and key clients to create new solutions for this growing market segment.”
The board will also include William P. Foley II, Executive Chairman of Cannae Holdings, Dun & Bradstreet and Black Knight and Alvi Abuaf, lead Industry Partner for Motive Partners.
Jeffery Yabuki, Chairman and Chief Executive Officer of Fiserv, commented: “We are delighted to be joining forces with Rob and Motive Partners to enhance and accelerate Investment Services’ leadership position. The new joint venture will increase our collective focus on growth and value, while creating more opportunities for clients, associates and shareholders.”
William P. Foley II, Chairman of Cannae Holdings, stated: “Fiserv Investment Services has delivered strong growth and powerful solutions for its clients for over 35 years. It is our belief that with positive industry tailwinds and the opportunity presented by wealth-technology innovation, we can continue to deliver superior solutions for our partners around the world. We look forward to delivering on our client-centric strategy and growth ambitions.”
As the Investment Services business of Fiserv positions itself as a standalone wealth technology leader, it will partner with Motive’s Industry Partners and technologists to capitalize on the client-centric value creation strategy Motive has developed.
The original Investment Services was founded in 1979 as Security APL and is now a market-leading technology provider to 7 of the top 10 U.S. broker-dealers, and 9 of the top 12 U.S. retail asset managers. The U.S. wealth management sector of over $20 trillion of assets under management and an estimated 20 million managed accounts. The deal is expected to close in the first quarter of 2020 and may be “slightly dilutive” to the adjusted earnings per share of Fiserv in 2020.
