Fiserv Expects Non-Cash Impairment Up to $600 Million in 3Q
By Connor Hart
Fiserv said it expects to record a non-cash impairment between $400 million and $600 million in the third quarter.
The impairment is equal to the carrying value of the company's investment in Wells Fargo Merchant Services, a joint venture between a wholly-owned subsidiary of Fiserv and Wells Fargo Bank, according to a Securities and Exchange Commission filing Wednesday.
The provider of services to banks and financial companies said it doesn't expect the impairment to affect its adjusted per-share earnings this year, or its medium-term performance outlook for organic revenue growth and adjusted per-share earnings in 2025 and 2026.
The joint venture, of which Fiserv acquired its 40% ownership in through its 2019 merger with First Data Corp., is set to expire next year on April 1. Upon expiration, the company expects to receive a cash payment or assets equal to the value of its share of the joint venture.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
September 25, 2024 17:40 ET (21:40 GMT)
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