Fiserv and Fidelity Divest “Non-core banking” business units

November 6, 2007

Fiserv (FISV) and Fidelity National Information Services (FIS) have just announced that they are divesting “non-core banking” business units. In light of recent large acquisitions by both companies (Fiserv buying CheckFree, Fidelity buying eFunds), these two divestiture announcements are noteworthy, in part due to the size of each business unit.

Fiserv and Fidelity have been long term competitors in the banking technology arena, particularly in the core bank processing, check processing, mortgage and auto finance servicing segments. More recently, Fiserv and Fidelity have begun to match up in the payments processing segment through acquisitions and organic product development to expand their respective capabilities.

Are these wise decisions by Fiserv and Fidelity? Which company is making a good decision?

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