Fiserv Inc (FISV) to Offer 20M Shares for KKR

Fiserv, Inc. (NASDAQ: FISV) announced that New Omaha Holdings L.P., which is owned by investment funds managed by Kohlberg Kravis Roberts & Co. L.P., has agreed to sell in an underwritten public offering a total of 20,000,000 shares of common stock of Fiserv, Inc.. In addition, New Omaha has agreed to grant the underwriters a 30-day option to purchase up to an additional 3,000,000 shares of the company’s common stock. Fiserv is not selling any shares in, nor will it receive any proceeds from, the offering. New Omaha will receive all of the net proceeds from the offering. The offering is expected to close on May 3, 2021, subject to customary closing conditions.

Subject to the completion of the offering, Fiserv intends to repurchase from the underwriters 5,000,000 shares of the company’s common stock that are subject to the offering at a price per share equal to the price per share to be paid by the underwriters to New Omaha in the offering (the “share repurchase”). Fiserv intends to fund the share repurchase with cash on hand. The repurchased shares will be cancelled and no longer outstanding following the completion of the share repurchase.

Prior to the proposed offering, New Omaha owned 85,300,667 shares of common stock, representing approximately 12.8% of the company’s outstanding shares of common stock, based on the number of shares outstanding as of April 23, 2021. Upon completion of the proposed offering, New Omaha is expected to own shares of common stock representing approximately 9.8% (or approximately 9.3% if the underwriters exercise their option to purchase additional shares in full) of the company’s outstanding shares, based on the number of shares outstanding as of April 23, 2021. The number of shares outstanding as of April 23, 2021 does not include any issuances or repurchases after such date, including the share repurchase.

Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are acting as joint bookrunning managers for the offering.

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