Fiserv, Inc (FISV) has decided to sell its financial services technology solutions business. The company announced today that it has signed a definitive agreement to sell its Loan Fulfillment Solutions (LFS) business to ISGN Solutions Inc., a subsidiary of ISGN Corporation. 

Fiserv assists financial institutions and health plan administrators in managing their information systems so that they can efficiently deliver services to their customers. The company is one of the leading providers of e-commerce solutions to financial institutions. Based in Bensalem, Pa, ISGN provides mortgage technology and services to banks and lenders. 

The transaction is subject to customary closing conditions and is expected to close within 30 days. Financial terms of the transaction were not disclosed and the company does not expect this transaction to have a material impact on its financial results. 

LFS provides financial institutions loan fulfillment services, which include broker price opinions, closing, and settlement services, valuation services, home retention and loan modification solutions, portfolio and vendor management solutions, and related services. 

Earlier, the company announced that six more financial institutions chose Fiserv as their technology partner. The new clients include CenTrust Bank of Northbrook, The Farmers National Bank of Canfield, Canfield, First National Bank of South Carolina, 1st National Community Bank of East Liverpool, Kopernik Federal Bank of Baltimore, TriCentury Bank of Simpson. 

Fiserv stated that demand for the company’s outsourced processing services remains high as most banks see outsourced processing as a cost effective and efficient way to deliver customer value. Management added that the trend to outsourcing continues, as community banks face the increasing complexity of risk and compliance requirements. The banks also selected a wide range of value-added Fiserv solutions, including Internet banking, electronic bill pay, mobile banking, remote capture, electronic funds transfer, item processing, and risk and compliance products. 

Management had earlier stated that 2009 would be a challenging year for the company, as the economy will take time to recover and then grow. Technology spending across the community banking space is estimated to be weak in 2009. Nevertheless, second half of 2009 is expected to be stronger than first half with bleak signs of recovery. The company is expected to report third quarter results on October 27, 2009.
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