Fiserv’s sale of its United Wealth platform has attracted the interest of several private equity firms, sources said.
As many as eight buyouts shops and a strategic were interested in the Fiserv unit, which provides technology and services, including financial advice management, portfolio management and billing services, for retail brokers, people said.
Fiserv recently asked for rebids to narrow the field of bidders, people said. Rebids were due on Monday, Oct. 7, one of the sources said. Fiserv United Wealth produces $70 million to $80 million Ebitda, Buyouts has reported. Citi is advising on the process.
While there was interest in the unit, the platform is losing its second-largest customer and is expected to sell for a low double-digit Ebitda multiple, people said. “The loss of Merrill and the lack of growth and investment in tech [were] all issues for us,” said one GP, who passed on the deal. The exec pointed to SS&C as a possible buyer.
Fiserv, of Brookfield, Wisconsin, provides financial services technology to banks, thrifts and credit units. The fintech giant completed its $22 billion acquisition of First Data, a payments company backed by KKR, in July. Fiserv was expected to own 57.5 percent of the combined company, while First Data has 42.5 percent, Buyouts has reported.
Separately, Lovell Minnick Partners said Monday, Oct. 14 that it acquired Billhighway, which provides software and payments solutions to membership-based organizations. First Data was the seller. The deal was valued at about $40 million, one of the sources said.
BluePay, when it was owned by TA Associates, acquired Billhighway in 2016. First Data then bought BluePay for $760 million in 2017. Fiserv then scooped up First Data earlier this year.
Executives for Fiserv, Citi and Lovell Minnick declined comment. SS&C and First Data could not be reached for comment.
Action Item: See Lovell Minnick’s latest form ADV here.