TheMReport — News and strategies for the evolving mortgage marketplace.
Issue link: http://digital.themreport.com/i/958155
4 | TH E M R EP O RT MTECH Of Partnerships and Platforms New opportunities, and digital initiatives defined the month for the mortgage industry. Fiserv Announces Partnership THE TECH COMPANY'S NEW VENTURE WILL PROVIDE ITS CLIENTS WITH SEAMLESS ACCOUNT PROCESSING, INTEGRATED BILLING AND PAYMENTS, AND LOAN SOLUTIONS. F iserv, Inc., a global pro- vider of financial services technology solutions, an- nounced a newly formed joint venture with Warburg Pincus, LLC, a global private equity firm focused on growth invest- ing. This deal is expected to create value for current and future clients by partnering closely with Fiserv for seam- less delivery of account pro- cessing, integrated billing and payments and LoanComplete solutions, and through Warburg Pincus' demonstrated expertise and track record in growing financial technology businesses of scale. According to the company's announcement, the definitive agreement with Warburg Pincus is pursuant to which funds affiliated with Warburg Pincus will acquire a 55 percent share of the Lending Solutions business of Fiserv. Fiserv will receive approximately $395 million in net after-tax proceeds and retain a 45 percent equity interest in the business. "We're really taking the best of Fiserv and adding a great partner, Warburg Pincus, who has a terrific track record of really growing the markets they are involved with. Ultimately, we see that as an opportunity to do bet - ter by our clients and help them do best for their borrowers," Bret Leech, President of Fiserv Lending Solutions, told MReport. Fiserv has worked with Warburg Pincus for many years and about a year ago, according to Leech, Fiserv began looking for someone who was aligned with their vision and the growth opportunities that they saw in the market. "We found Warburg Pincus as someone who aligned with the vision that we had and the growth opportunities that we saw in the market and decided to partner with them. Warburg Pincus has done this time and time again and had a history not only in the market broadly but also in the space that we operate in," Leech said. The company plans to remain client-focused even after this new partnership. "As a firm, we are committed to the path we've laid out for our clients and excited to talk with them about new ways that we can grow that even faster. So for us, time with the clients is always number one, we are definitely client focus in how we approach the market, we believe that understanding their needs, and ultimately the borrowers will set us all up well for success," Leech said. "The job for us is similar as it was the other day, just at a faster pace. Let's get with our clients, continue to communicate with them and make sure we have great alignment when it comes to our roadmap, both with existing clients and some with the potential that we are chatting with."