Activist investor Jana Partners has built a stake in Fiserv and is pushing for changes to boost the payments company’s underperforming stock, according to people familiar with the matter.
The details
Fiserv, which provides fintech services to banks, credit unions and merchants, had a market value of about $32 billion as of Friday.
Fiserv shares tumbled almost 70% last year on slowing growth in its core merchant-solutions business and heightened industry competition. Year-to-date, the stock is down over 11%. Much of the drop last year came after Chief Executive Officer Mike Lyons joined and cut prior profit forecasts to reset earnings growth expectations on Wall Street, with the company losing around $30 billion of market value in one day.
Jana has been speaking privately with the Milwaukee-based company about ways to improve its share price, the people said. The investment firm believes Fiserv is poised to benefit from a strong spending environment for banks, the people said.
Jana supports Lyons and his focus on improving execution and refreshing the board, the people added. Lyons was appointed to the role in May from his prior job at PNC Financial. (Fiserv’s former CEO, Frank Bisignano, left to join the Trump administration.)
The exact size of Jana’s stake and whether or not the firm could seek board representation couldn’t be learned.
“During the past several months, we have engaged with many of our shareholders, including Jana Partners,” a spokesperson for Fiserv said in a statement. “We value shareholder perspectives as we drive progress through our One Fiserv action plan.”