MILWAUKEE — Fiserv said it is spinning off several of its cash-handling and ATM-related businesses into a newly formed joint venture with private equity firm Bridgeport Partners, a move the company said is designed to better position those operations for growth while allowing Fiserv to sharpen its strategic focus.
According to a statement from Fiserv, the transaction includes the company’s ATM Managed Services, Cash & Logistics and MoneyPass business lines. Bridgeport Partners will assume operational control and day-to-day management of those divisions once the transaction closes, subject to regulatory approvals and customary closing conditions.
Fiserv said the arrangement is intended to combine its client relationships and payments technology with Bridgeport’s experience scaling financial technology and payments-related businesses. The company said Bridgeport’s leadership team brings more than 40 years of banking and payments industry experience, particularly in operational management and product innovation.
Formal Governance Structure to Come
The companies said they will establish a formal governance structure designed to align on client outcomes and long-term growth objectives. Until the transaction is finalized, the businesses will continue operating under Fiserv’s management.
“Fiserv has built strong, durable businesses serving financial institutions, merchants and consumers across the ATM and cash ecosystem,” Fiserv CEO Mike Lyons said in the statement. “This agreement reflects our One Fiserv approach, delivering positive client experiences, aligning each business with the operating model and investment best suited to drive growth and client outcomes.”
‘Transition Year’
The announcement comes as Fiserv works through what it has described as a transition year following weaker recent financial results.
Fiserv reported earlier this month that first-quarter adjusted revenue fell 2.4% year over year to $4.68 billion, while organic revenue declined 4%. The company also said its financial solutions segment posted a 6% decrease during the quarter.
According to Fiserv, shifting operational responsibility for its ATM and cash logistics businesses is part of a broader effort to reshape its portfolio and focus more heavily on growth areas, including its Clover point-of-sale platform and other core banking technologies.
