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Fiserv seeks buyer for Unified Wealth Platform

Fiserv, which just closed its $22 billion buy of First Data, has put its Unified Wealth Platform on the block, four sources said.

Citi is advising on the process, the people said. The Unified Wealth Platform provides technology and services, including financial advice management, portfolio management and billing services, for retail brokers, a person said. The unit produces $70 million to $80 million Ebitda, two of the sources said.

Bids for Unified are due during the first half of September, the person said.

Fiserv, of Brookfield, Wisconsin, provides financial services technology to clients including banks, thrifts and credit unit. The fintech giant completed its $22 billion acquisition of First Data, a payments company backed by KKR, in July. Fiserv is expected to own 57.5 percent of the combined company, while First Data will own 42.5 percent, Buyouts reported in January.

The Unified sale comes as wealth management deals have emerged as a hot sector. Several transactions have sold for high multiples. Genstar Capital is currently selling Mercer Advisors, Buyouts said. Mercer produces pro-forma, run-rate Ebitda of $50 million and is seeking bids of 15x to 16x, sources said.

In July, Lightyear Capital sold Wealth Enhancement Group to TA Associates. Wealth Enhancement produced pro-forma, run-rate Ebitda of $35 million and sold for 15x, Buyouts said.

Reverence Capital agreed to buy 75 percent of Advisor Group in May in a deal valued at more than $2 billion.

Executives for Citi and Fiserv declined comment.

Action Item: See Fiserv’s Jan. 16 investor presentation for its buy of First Data here

*Milana Vinn contributed to this report