Fiserv Inc., Brookfield-based provider of information technology services to the financial and insurance industries, today announced it has signed a definitive agreement to sell 51 percent of its interests in its insurance businesses to Trident IV, a private equity fund managed by Stone Point Capital LLC.

Trident will invest approximately $205 million in equity and $335 million in debt in the transaction.

Fiserv expects to receive approximately $510 million in net after-tax proceeds and to retain a 49 percent equity interest in Fiserv Insurance Solutions. The transaction is anticipated to close in July, subject to regulatory approval and other customary closing conditions.

The transaction will include nearly all aspects of Fiserv's insurance segment. The current management team and employee base will continue with the company, which will be known as Fiserv Insurance Solutions Inc.

"Stone Point Capital brings a proven track record of insurance industry success that we believe will accelerate the growth opportunities for Fiserv Insurance Solutions and its clients," said Jeffery Yabuki, president and chief executive officer of Fiserv. "Within Fiserv, we are able to free up capital, maintain an interest in Fiserv Insurance Solutions that should increase in value, and intensify our focus on delivering products and services within the broad financial services and payments landscape."

"We are delighted to partner with Fiserv and the management team of Fiserv Insurance Solutions," said Chuck Davis, CEO of Greenwich, Conn.-based Stone Point Capital. "Fiserv Insurance Solutions is a leading player in the insurance technology and outsourcing space. We believe there are a number of exciting growth opportunities for the business, and we look forward to working with the Fiserv Insurance Solutions management team to pursue these growth initiatives as an independent company focused on serving the insurance marketplace. We are also pleased that Fiserv will be continuing its involvement, through a significant minority ownership position, which we believe will further enhance the company's prospects for success."

"Stone Point Capital's business philosophy and culture match our own," said Mark Damico, president and CEO of Fiserv Insurance Solutions. "The entire Fiserv Insurance Solutions management team is excited to go to market with a partner with deep insurance sector expertise. Stone Point Capital recognizes our commitment to employees as well as clients and, through our partnership, we will continue to provide innovative solutions for years to come."

Fiserv expects slight 2008 earnings dilution of less than 1 percent, or 2 to 3 cents per share..

In a related action, the Fiserv board of directors authorized the repurchase of up to an additional 10 million shares of Fiserv common stock, or approximately 6 percent of its outstanding shares.

The company has completed its previous repurchase authorization.

"We continue to view share repurchase as an important element in building shareholder value through capital allocation," Yabuki said. "Our strong free cash flow combined with significant proceeds from dispositions in 2008 allows us to meet our debt commitments and to repurchase shares under this new authorization."