Stone Point pays $540m for insurance unit

The Marsh & McLennan spin-out has acquired a 51 percent stake in quoted Fiserv’s insurance technology division.

US private equity firm Stone Point Capital has purchased a controlling stake in financial technology services company Fiserv’s insurance division for $540 million (€340 million).

The deal for Fiserv Insurance Solutions, a provider of outsourced processing services for insurance companies, is comprised of $205 million in equity and $335 million in debt.

If the deal is approved by Fiserv shareholders, the Fortune 500 company will retain a 49 percent equity interest in the division.  The transaction is expected to close within the month.

Financial services-focussed Stone Point is currently investing its fourth fund, Trident IV, which has $2.2 billion in committed capital.

The Fiserv divestiture is on the higher end of Stone Point’s typical deal size. The firm, which spun out of Marsh & McLennan Company’s MMC Capital in 2005, usually invests between $25 million and $300 million in its transactions.

Stone Point is no stranger to divestitures from major public companies. Last year, the firm acquired Automobile Protection Corporation, a division of Ford Motor Company that provides vehicle service contracts to Ford dealers.