Fiserv sells securities clearing unit to Fidelity Investments

Fiserv sells securities clearing unit to Fidelity Investments

Fiserv has signed a definitive agreement to sell its securities clearing operation BHC Investments to National Financial, a unit of Fidelity Investments, for $365 million.

The transaction is expected to be complete in the first quarter of 2005, with transition of Fiserv's correspondent clients and securities businesses to National Financial and Fidelity Brokerage Company expected to be complete by the end of next year.

Fiserv does not expect to make a material gain or loss as a result of the transaction.

The vendor says the sale of the unit will enable it to focus on its financial institution, health administration, insurance and trust businesses.

Leslie Muma, president and CEO, Fiserv, adds: "This transaction also provides us with additional capital to enhance our already strong financial position and improve our strategic flexibility.

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