Benzinga | Dec 10, 2020 07:33AM EST

Fiserv Announces Pricing Of 17.5M Share Secondary Common Stock Offering By New Omaha Holdings At $112/Share; Subject To The Completion Of The Offering, Fiserv Has Agreed To Repurchase From The Underwriters 1,817,520 Shares Of The Company's Common Stock

Fiserv, Inc. (NASDAQ:FISV), a leading global provider of payments and financial services technology solutions, announced today the pricing of the previously announced underwritten public offering of 17,500,000 shares of the company's common stock by New Omaha Holdings L.P. ("New Omaha"), which is owned by investment funds managed by Kohlberg Kravis Roberts & Co. L.P., at a price of $112.00 per share (the "offering"). In addition, New Omaha has granted the underwriters a 30-day option to purchase up to an additional 2,625,000 shares of the company's common stock at the public offering price, less underwriting discounts and commissions. 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 December 11, 2020, subject to customary closing conditions.

Subject to the completion of the offering, Fiserv has agreed to repurchase from the underwriters 1,817,520 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 105,425,667 shares of common stock, representing approximately 15.7% of Fiserv's outstanding shares of common stock, based on the number of shares outstanding as of October 23, 2020. Upon completion of the proposed offering, New Omaha is expected to own shares of common stock representing approximately 13.1% (or approximately 12.7% if the underwriters exercise their option to purchase additional shares in full) of Fiserv's outstanding shares of common stock, based on the number of shares outstanding as of October 23, 2020. The number of shares outstanding as of October 23, 2020 does not include any issuances or repurchases after such date, including the share repurchase.