American fintech solutions provider Fiserv has signed a definitive agreement to divest up to 60% stake of its Investment Services business.

The majority stake will be purchased by a group of investors led by private equity firm Motive Partners.

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As part of the deal, Fiserv will receive around $510m in net after-tax proceeds and will retain the remaining 40% stake.

Fiserv Investment Services president will continue to lead the business, while Motive Partners founder and managing partner Rob Heyvaert will serve as executive chairman of the newly-formed joint venture.

Fiserv chairman and CEO Jeffery Yabuki said: “We are delighted to be joining forces with Rob and Motive Partners to enhance and accelerate Investment Services’ leadership position.

“The new joint venture will increase our collective focus on growth and value, while creating more opportunities for clients, associates and shareholders.”

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Fiserv’s Investment Services business provides technological support to the wealth and asset management industry. Its portfolio includes end-to-end software solutions for the front, middle and back office operations.

Rob Heyvaert said: “As a leading provider of mission-critical solutions to a growing, blue-chip client base, we look forward to partnering with Fiserv and the Investment Services team in this joint venture.

“The Investment Services business has demonstrated its ability to deliver a compelling solution for its wealth and asset management clients and I am confident that our team at Motive Partners will add significant value through innovation, insights and an expanded network.”

The deal is slated to close in the first quarter of 2020, subject to necessary approvals and closing conditions.

Last year, Motive Partners acquired signed a deal to acquire controlling stake in Finantix, another fintech provider serving private banks, wealth managers and insurance firms.